TNAG-1269-FCO40-1619-Banking-situation-in-Hong-Kong-1983 — Page 68

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"are audited both internally and externally as well as having

been examined by the Banking Commissioner of Hong Kong", "the

legal advisers of Carrian have indicated that Carrian stands

by the correctness of the Scheme Accounts in respect of both

CIL and CHL Schemes" and that "there is accordingly a dispute

between Carrian and BMFL as to the amount owing by CIL, CHL,

and companies beneficially owned and controlled by Mr. Tan and

his family". A copy of this statement is attached and marked

"RF9".

24.

Z

REPLIES to my various requests have been received but

none of them explained the matters I had raised. In an

endeavour to establish whether the debts to BMFL had ever been

acknowledged by CHL and CIL, I examined verification letters

sent by BMFL to CHL and CIL and related companies asking for

confirmation of the particular debt owed to BMFL by the individual

companies of the Carrian Group as at either 30th November 1982

or 31st December 1982. In all cases these confirming letters

were returned to the auditors of BMFL with the debt or debts

acknowledged in full by directors or employees of CHL, CIL and

their related companies. The signatures acknowledging debt

include the signature of Mr. Bentley Ho. Copies of these

confirming letters are attached in a bundle marked "RF10".

25.

I put copies of these confirming letters to Mr. George

Tan and the directors of CHL and CIL and to Wardleys and Hambros

on 24th September 1983. A copy of the subsequent correspondence

is attached in a bundle marked "RF11".