TNAG-1436-FCO40-1919-Hong-Kong-leading-personality-Li-Ka-shing--businessman-1986 — Page 116

GRS 300

CONFIDENTIAL

FM HONG KONG

TO DESKBY 271000Z FCO

TELNO 3538

OF 270915Z OCTOBER 86

Confidentiape

COPY DIST ?

see

HKK 010/4

IVED IN REGISTRY

06 NOV 1986

OFFICER

5

PA

REGISTRY Action Taken

PERSONAL FOR HUM, HAD, FROM GOVERNOR.

YOUR TELNO 2375 : MR. LI KA-SHING.

1. YOU WILL HAVE SEEN LAST WEEK'S PRESS REPORTS THAT MR. LI'S

APPLICATION FOR JUDICIAL REVIEW OF THE FINDINGS OF THE INSIDER

DEALING TRIBUNAL WAS UNSUCCESSFUL. THE FOLLOWING STATEMENT WAS

CARRIED IN THE ENGLISH AND CHINESE PRESS TODAY

**CHEUNG KONG (HOLDINGS) LIMITED IN RELATION TO THE APPLICATIONS

TO THE HIGH COURT FOR JUDICIAL REVIEW OF THE DETERMINATIONS OF THE

INSIDER DEALING TRIBUNAL MAKES THE FOLLOWING ANNOUNCEMENT.

THE COMPANY AND ITS DIRECTORS ARE, NATURALLY, DISAPPOINTED BY THE

OUTCOME OF THE CASE.

HOWEVER, THE HONOURABLE MR. JUSTICE KEMPSTER HAS MADE IT PLAIN IN HIS JUDGMENT THAT A DETERMINATION OF CULPABILITY BY THE TRIBUNAL

NEED NOT BE EQUATED TO A FINDING OF EITHER DISHONESTY OR FRAUD.

THE TRIBUNAL MADE NO DETERMINATION OF DISHONESTY OR FRAUD OR MOTIVES

OF PERSONAL GAIN AGAINST ANY OF THE DIRECTORS.

WHILE COUNSEL FOR THE COMPANY HAVE ADVISED THAT THERE ARE REASONABLE GROUDS FOR FURTHER APPEAL, THE BOARD CONSIDERS THAT ERRONEOUS IMPRESSION OF FRAUD OR DISHONESTY CREATED BY THE PUBLICITY GIVEN TO THE FINDINGS OF THE TRIBUNAL HAVE BEEN ADEQUATELY DISPELLED IN THE COURSE OF MR. JUSTICE KEMPSTER'S JUDGMENT.

FURTHERMORE, AS THE JUDGE HAS EMPHASISED IN HIS JUDGMENT, THE NARROW FRAMEWORK OF JUDICIAL REVIEW PROCEDURE DOES NOT PERMIT THE COURT TO REVIEW THE MERITS OF THE TRIBUNAL'S DETERMINATIONS.

IN THE ABOVE CIRCUMSTANCES THE BOARD, AFTER CAREFUL DELIBERATION, HAS DECIDED THAT IT WOULD BE MEANINGLESS TO TAKE ANY FURTHER ACTION.

THE COMPANY TAKES THIS OPPORTUNITY TO THANK ITS SHAREHOLDERS AND

FRIENDS FOR THEIR CONCERN AND SUPPORT.**

Confidential

12.