TNAG-1650-FCO40-2297-Hongkong-and-Shanghai-Banking-Corporation-(HSBC)-1987 — Page 5

HongkongBank

The Hongkong and Shanghai Banking Corporation

Group Head Office: 1 Queen's Road Central, Hong Kong

Ref:

Shareholder Investments Research 70/77 Cowcross Street

London, EC1M 6BP

United Kingdom

Attn.: B G Pounds Esq

Dear Sirs

7/27

14 SEP 1987

4 September 1987

FREDERIC HAZEL PENTYCROSS, DECEASED

Further to our letter dated 16 July 1987, our Shanghai Office has advised that all securities in this portfolio are prohibited for export and that the Municipal Bonds have been prohibited for export since Liberation (1949) and it is unlikely that authority to export these will ever be given.

They have advised us, inter alia, as follows :

"All other shares are at present prohibited for export, at least

temporarily. We understand that following the Sino-British Settlement no definite. instructions have been received in Shanghai from Beijing on how to handle the shares in question. The local monetary authorities have informed us that they will not be in a position to respond formally until further guidelines are received by them.

Accordingly, an alternative approach is for the executors of the above estate to take the issue up with the appropriate UK authorities with the request that their assistance is sought in liaising with Beijing to arrange for suitable guidelines to be given to Shanghai."

This is obviously an unsatisfactory situation, particularly in view of the recent Sino-British agreement, and we would not expect it to persist. We will advise you of any further developments.

Yours faithfully

JR H Almond

Assistant Manager Group Finances

dc

Incorporated in Hong Kong with limited liability

GPO Box 64, Hong Kong Telephone:5-8221111 Telex: 73201 HKBG HX Telegrams: Hongbank Hongkong

Please address all letters to The Manager