A
B
TT FCO
TT PEKING
GR 500
CONFIDENTIAL
Who has
Lalp
wait to
Submit to itcw.
I wins night to
23
In Gulamanthy
You will with to see fork. I have attackel
previous
(Looks ok-submit & Dr Tapers (Looks
11002 327
RECEIVED IN REGISTRY
ILGA
25 JUL 1985
Wilom?)
INDEX
TELELETTER
FROM: R.P. MARGOL 15, ACTING POLITICAL ADVISOR, HONG KONG
FILE REF: SCR 2/3571/75 11
DATED: 20 JULY 1935
TO: A.C. GALSWORTHY, ESQ., CMG, HKD FCO
CC: D.G. BLUNT ESO., BRITISH EMBASSY, PEKING
C.C.W. ADAMS ESQ, SENIOR BRITISH TRADE COMMISSIONER, HONG KONG
COMMERCIAL ACTIVITIES OF XU JIATUN: A POSSIBLE JOINT VENTURE.
1. PLEASE REFER TO JOHN BOYD'S LETTER OF 14 JUNE 1985 AND YOUR
TELELETTER OF 31 MAY. AS A RESULT OF THIS EXCHANGE, WE AGREED THAT, AS THINGS STOOD, THERE WAS NO NEED TO APPROACH XU JIATUN
ABOUT MILLIE'S HANDBAGS/TIN TIN YAT PO.
2. BUT THERE IS NOW A NEW DEVELOPMENT. A BRITISH BUSINESSMAN, MR KENNETH ATKINSON, MANAGING DIRECTOR OF KOWIN CHINA INVESTMENTS LTD., CALLED ON SBTC ON 28 JUNE. HE BRIEFED CHRISTIAN ADAMS ON A VARIETY OF IMAGINATIVE PROJECTS IV PEKING AND ESLEWHERE WHICH ARE NOT RELEVANT TO THIS LETTER (NOR ARE KOWIN'S SOURCES OF CAPITAL IN THE U.S. OR THE REGISTRATION OF ITS PARENT COMPANY IN THE BRITISH VIRGIN ISLANDS).
3. ATKINSON WENT ON TO SAY, HOWEVER, THAT HE HAD BEEN APPROACHED BY XU JIATUN WHO WANTED TO FORM A JOINT VENTURE WITH KOWIN TO PROMOTE FURTHER JOINT VENTURES IN CHINA. THE CHINESE PARTNER WOULD BE A WHOLLY-OWNED SUBSIDIARY OF NONA (WHITHER EVERBRIGHT?). ASKED WHETHER THERE WERE ANY POLITICAL ANGLES CHRISTIAN ADAMS TOLD ATKINSON HE THOUGHT NOT BUT THAT HE OUGHT TO CONSULT JOHN BOYD.
4. WE HAVE SO FAR BEEN CONTACTED BY NEITHER ATKINSON NOR NONA
BUT IT SEEMS THAT WE MAY BE. IN THIS CASE WE SHALL BE OBLIGED TO
TAKE A POSITION, ESSENTIALLY THIS MUST BE THAT :
通
(A) NCNA'S (OR KOMIN'S) ACTIVITIES INSIDE CHINA ARE OF NO INTEREST
TO US.
(3) COMMERCIAL DEALS IN HONG KONG ARE COMMERCIAL DECISIONS FOR
THE TWO PARTIES.
(C) THE ESTABLISHMENT AND CONDUCT OF COMMERCIAL CONCERNS AND
ACTIVITIES IN HONG KONG MUST COMPLY WITH THE LAWS OF HONG KONG.
5. HAVING MADE THESE STANDARD RESPONSES WE MUST SURELY TAKESTHE
OPPORTUNITY TO WARN NOWA, DIRECTLY IF THEY COME THEMSELVES, OR INDIRECTLY THROUGH ATKINSON, THAT IN A COMMERCIAL OPERATION IN HONG KONG THEY ARE NOT EXEMPT FROM THE LAWS OF HONG KONG: AND
THAT IF MEMBERS OF NCNA FIND THEMSELVES IN DIFFICULTY HERE ON ACCOUNT OF THEIR COMMERCIAL ACTIVITIES, WE SHALL NOT BE ABLE TO HELP THEM. THIS IS SMALLER BEER THAN THE LINE OFFERED IN JOHN BOYD'S LETTER UNDER REFERENCE: BUT IF WE FAIL TO SAY EVEN THIS, DIRECTLY APPROACHED, WE COULD FIND OURSELVES AWKWARDLY PLACED IF AND WHEN XU'S PLOYS DO GO WRONG.
6. UNLESS YOU EXPRESS STRONG OBJECTION, BY TELEGRAM BY 26 JULY PLEASE, JOHN BOYD OR I WILL SPEAK ON THESE LINES IF AND WHEN APPROACHED.
7. THE REGISTRAR GENERAL, WHOW VE HAVE CONSULTED, AND WHO AGREES WITH THE APPROACH SUGGESTED ABOVE, HAS POINTED OUT THAT NCNA, LIKE MOST PRC ORGANIZATIONS IN HONG KONG IS NOT REGISTERED AS A
LOCAL COMPANY OR FOREIGN CORPORATION. THE USUAL PRACTICE OF
CHINESE ORGANIZATIONS HAS BEEN TO NOMINATE ONE OR MORE INDIVIDUALS
FOR TRANSACTIONS WHICH REQUIRE SOMEONE TO TAKE LEGAL RESPONSIBILITY
FOR THEN, E.G. GRANTS OF LAND. IN SOME CASES A DEED. OF TRUST IS
THEN MADE BY THE INDIVIDUALS IN FAVOUR OF THE ORGANIZATION IN QUESTION. IT SEEMS LIKELY THAT NONA WILL HAVE TO USE TUDIVIDUALS IN THIS WAY FOR THE PROPOSED JOINT VENTURE WITH KOWIN. SINCE NCNA CANNOT. IN THE COMMERCIAL AND LEGAL SENSE. HAVE A SUBSIDIARY,
WHOLLY OWNED OR OTHERWISE. THIS. IN OUR VIEW, REINFORCES THE MEED FOR A GENTLE WARNING. SHOULD THE OPPORTUNITY ARISE.
SIGNED R.P. MARGOLIS
No comments yet.
Private notes are available after approval.