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WILL GO THROUGH TO SUN HUNC KAT BANK.
• CONSEQUENTLY THE LATTER HAS RECEIVED AN INJECTION OF DOLLARS 200 MILLION NEW CAPITAL EQUIVALENT.
WE HAVE NOTED THESE MEASURES WITH APPROVAL.
4. AS ADDITIONAL MEASURES, THE HONG KONG AND SHANGHAI BANK HAS AGREED TO MAKE AVAILABLE CONSIDERABLE CREDIT, WHILE THE HONG KONG GOVERNMENT HAS ADDED SUN HUNG KAL BANK TO 44TS LIST OF QUALIFIED DEPOSITORS FOR THE EXCHANGE FUND AND WILL PLACE DEPOSITS WITH IT ON NORMAL COMMERCIAL TERMS. THIS LATTER ARRANGEMENT WAS AGREED ON THE BASIS OF LETTERS OF COMFORT WHICH WE HAVE AGREED WITH PARIBAS AND MERRILL LYNCH. MT IS NOT KNOWN AS YET IF THE EXCHANGE FUND WILL NEED TO MAKE SUCH DEPOSITS SUT WE HAVE PLACED A LIMIT OF DOLLARS 350 MILLION ON THEM.
5. WE HOPE AND BELIEVE THAT THESE MEASURES WILL SORT OUT THIS PARTICULAR PROBLEM FOR SUN HUNG KAH DANK. THE EFFECTS ON THE EXCHANGE RATE OF THE HK DOLLAR REMAN HYPOTHETICAL, BUT CANNOT
BE GOOD.
7. ON THE HANG LUNG BANK FRONT, A SMALL MACAU INSTITUTION THE PACIFIC BANK (SANCO DO PACIFICO) HAS HAD +TS OPERATIONS SUSPENDED BY THE AUTHOR ITHES ON 1 OCTOBER. HTS AFFAIRS ARE. ENTANGLED WITH THOSE OF HANG LUNG BANK, WHOSE NEW BOARD IS UNVESTIGATING THE POSITHON URGENTLY.
CONSULTAT YON HAS TAKEN PLACE BETWEEN THE HKG AND MACAU BANKING COMMISSIONERS.
YOUDE
MANN
20/5
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