TNAG-1269-FCO40-1619-Banking-situation-in-Hong-Kong-1983 — Page 67

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

A copy of that letter is attached and marked "RF5". In addition,

in a letter to BMFL dated 18th October 1982 Mr. Bentley Ho then

Executive Director of CHL and CIL asked for CIL debt to be

transferred to CHL. A copy of this letter is attached and marked

"RF6".

21.

THE matters of the understatement of the Carrian Group

debt and the apparent preference shown to BMFL by at least George

TAN of CHL were put to, inter alia, directors, financial advisers

and auditors of CHL and CIL by me at a meeting held at my Office

on the 10th September 1983. I handed to all parties present at

that meeting an Aide Memoire recording these matters and that it

is now attached hereto and marked "RF7". At the same time I

requested those present to consider the document and to urgently

provide explanations of the matters raised therein.

22.

AT the behest of the Securities Commission, on various

occasions I have continued to request explanations of these

matters from the various parties involved. In this regard, copies

of these requests are attached in the bundle marked "RF8". These

requests show that in addition to the debts owed by CHL and CIL

to BMFL, assets of CHL and CIL and their subsidiaries had been

pledged to or deposited with BMFL.

23.

ON 28th September 1983 I met at my Office with legal

advisers of BMFL, CHL and CIL and of Geroge TAN. At this meeting

a statement was tabled by the BMFL advisers stating inter alia

that whereas BMFL maintained the "correctness of its books" which

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