TNAG-1416-FCO40-1897-The-financial-activities-of-Xu-Jiatun--Head-of-New-China-New-1985 — Page 19

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FCEIVED IN REGISTRY 14 MAY 1985

i neeSTRY

CONFIDENTIAL

TELELETTER

FROM: J.D.I. BOYD, POLITICAL ADVISER, HONG KONG

FILE REF: NFR

DATED: 11 MAY 1985

TO: A.C. GALSWORTHY ESQ., HONG KONG DEPARTMENT, FCO

COPIED TO: D. BLUNT ESQ., PEKING

FED, FCO

सं

APOLOGIES FOR OMISSION. THE FOLLOWING IS TEXT OF MEMO DATED 1 MAY FROM DPA TO REGISTRAR GENERAL HEADED COMPANIES WINDING-UP NO. 19 OF 1985 MILLIE'S HANDBAG AND SHOES PTY. LTD.

BEGINS

THANK YOU FOR YOUR MEMO OF 15 APRIL, AS I UNDERSTAND IT, THE POSITION IN LAYMAN'S TERMS IS AS FOLLOWS:

(A) MR ALAN LAU TOOK STEPS, IMMEDIATELY BEFORE THE WINDING UP

OF MILLIE'S HANDBAGS AND SHOES, TO ENSURE THAT THE TIN TIN DAILY NEWS REMAINED SOLVENT AND WAS REMOVED FROM THE SCOPE OF THE WINDING UP OF HIS OTHER INTERESTS.

(B) THIS WAS ACHIEVED BY THE TRANSFER OF OWNERSHIP, AND BY THE

RAISING OF A LOAN FROM THE KINCHENG BANK, FOR WHICH MR XU JIATUN HAS GIVEN A GUARANTEE.

(C) THE TRANSFER OF OWNERSHIP MIGHT IN SOME CIRCUMSTANCES HAVE

RESULTED IN THE KINCHENG BANK CALLING IN THE GUARANTEE, BUT THE INDICATIONS ARE THAT THE KINCHENG BANK HAS NO INTENTION OF DOING SO.

2. THE SUGGESTION, RECORDED IN THE LAST SENTENCE OF MY MEMO OF 10 APRIL, THAT THE SHARES IN TIN TIN DAILY MIGHT HAVE BEEN SOLD (FRAUDULENTLY) TO TWO DIFFERENT BUYERS WAS A RUMOUR: CLEARLY, ANY SUCH TRANSACTION, IF IT TOOK PLACE, WOULD HAVE BEEN OBSCURED AS FAR AS POSSIBLE. IT APPEARS FROM YOUR MEMO UNDER REFERENCE THAT YOU HAVE NO EVIDENCE WHICH WOULD SUBSTANTIATE THE RUMOUR. IT WOULD NEVERTHELESS BE HELPFUL IF YOU COULD KEEP ME POSTED OF ANY DEVELOPMENTS WHICH MIGHT IN YOUR VIEW LEAD TO MR XU JIATUN'S GUARANTEE BEING INVOKED.

3. HKD REGISTRY PLEASE PASS TO FED.

SIGNED J.D.I. BOYD

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