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CONFIDENTIAL
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CONFIDENTIAL IN ALGARY NO. 51
2 0 OCT 1983
17
FM HONG KONG 281050Z SEF 83
TELEGRAM NUMBER 1429 OF 28 SEPTEMBER
TO IMMEDIATE FOO
INDEX
TA
USTRY
crion Taken
INFO MAMEDIATE UKMIS NEW YORK (FOR PS TO S OF SI, WASHINGTON (FOR
PS TO CHANCELLOR OF EXCHEQUER)
HANC LUNG BANK.
WIT
FURTHER TO THE DEVELOPMENTS DESCRIBED IN TELEGRAM NUMBER 1418
OF 27 SEPTEMBER, THE LEGISLATIVE COUNCIL, AT THE SPECIAL SITTING WHICH TOOK PLACE AT 1800 HOURS HONG KONG TIME ON 27 SEPTEMBER,
PASSED THE HANG LUNG BANK (ACQUISATION) BILL 1983 AND I HAVE
GIVEN MY ASSENT ON THE GROUND OF URGENT NECESSITY, UNDER PARAGRAPH
4 OF CLAUSE XXVI OF THE ROYAL INSTRUCTIONS.
2. THE BILL HAVE ASSENTED TO IS BEING SENT TO YOU BY DESPATCH.
THE CIRCUMSTANCES LEADING TO THE PASSING OF THE BILL THROUGH
THE LEGISLATIVE COUNCIL, WHICH CONSTITUTE THE REASONS FOR MY
HAVING ASSENTED, HAVE BEEN DESCRIBED IN MY TELEGRAM NUMBER 1418
OF 27 SEPTEMBER.
3. THE BANK OPENED FOR NORMAL BUSINESS TODAY UNDER GOVERNMENT
OWNERSHIP AND A NEW BOARD CHAIRED BY THE SECRETARY FOR MONETARY
AFFAIRS WITH A SENIOR MANAGEMENT TEAM FROM THE HONG KONG AND
SHANGHAI BANKING CORPORATION.
4. EARLY IN THE MORNING, DEPOSITORS OF THE HANG LUNG BANK WERE
UNDERSTANDABLY NERVOUS ABOUT THEIR POSITHON. THERE WERE UNUSUAL
NUMBERS OF PEOPLE AT TWO OF 28 BRANCHES OF THE BANK. THEY ARE
BOTH LOCATED IN THE NEW TERRITORIES. BUT AS WITHDRAWALS
WERE PROMPTLY MET AND DEPOSITORS WERE ASSURED BY THE STAFF OF
THE BANK THAT THEIR MONEY WAS NOW VERY SECURED WITH A GOVERNMENT
BANK, THE SITUATION WAS QUICKLY UNDER CONTROL. THE NEW CHAIRMAN
OF THE BANK GAVE A REASSURING PRESS BRIEFING AT ABOUT NOON, AND
BY EARLY AFTERNOON, THE BANK WAS RUNNING NORMALLY.
YOUDE
LIMITED
HKD
FED
ESID
LEGAL ADVISERS
MR GIFFARD
ма
DONALD
CONFIDENTIAL
(REPEATED AS REQUESTED)
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