TNAG-1624-FCO40-2238-Relations-between-Hong-Kong-and-China-1987 — Page 22

[Hu

020

2 O NOV 1988

Mr Thomas

Claims Department

PA

235

ozoli

Mr. Folk Hope

FROM: APS/Mr Eggar

DATE: 10 November 1987

cc: Miss Pestell

Mr Grainger, Legal Advisers

FED

HK D

Dr Hoare, Research Dept Mr Griffiths, Finance Dept

CHINA ORDER-IN-COUNCIL

1. Thank you for your telephonic response to my minute of 4 November.

2.

Mr Eggar has now given further consideration to your submission of 30 October and is content for officials to proceed with the drafting of the China Order-in-Council as proposed.

3. Mr Eggar has specifically agreed to

(a) the reversion to judicial determination of bond claims; (b) similar arrangements for exchange rate and an interim

payment on the lines of the Russian Order;

(c) no compensation for guaranteed interest Chinese bond

holders;

(d) the exclusion of "bona vacantia" claims. (Mr Eggar has

commented that he would be willing to take this up with the Treasury if they remained unhappy with this proposal); and (e) the inclusion of pension claims, subject to the usual

nationality requirements.

Caroline Hart

Caroline Hart