TNAG-1651-FCO40-2299-Bankruptcy-in-Hong-Kong-Bankruptcy-(Amendment)-Ordinance-198-1987 — Page 55

CONFIDENTIAL

FM PEKING

TO IMMEDIATE FCO

CONFIDENTIAL

HKC 104

RECEIVED IN REGISTRY

20 OCT 1987

TELNO 1764

OF 160308Z OCTOBER 1987

DESK OFFICER

INDEX

RECIATRY

PA

Action

INFO IMMEDIATE HONG KONG

3

025601

MDHIAN 1298

4

OPY C:OT ?

HONG KONG TELNO 3889: KA WAH BANK PROSECUTION: EVIDENCE FROM

TAIWAN.

SO FAR AS CHINESE SENSITIVITIES ARE CONCERNED, WE AGREE THAT, IF NO 'MAGIC FORMULA CAN BE FOUND, THE OPTION DESCRIBED IN PARA 5(B)

OF TUR SEEMS THE BEST WAY TO SECURE CERTIFIED COPIES OF THE

DOCUMENTS.

2=

·

WE ARE NOT SURE THAT THE CHINESE WOULD BE OVER-SENSITIVE TO THE

DIFFICULTY IDENTIFIED IN PARA 8 OF TUR (IE THAT THE CHIEF SECRETARY

IS REQUIRED TO CERTIFY THAT HE HAS RECEIVED ''THE FOREIGN DOCUMENTS ATTACHED TO THIS CERTIFICATE''), SINCE WE THINK WE COULD JUSTIFIABLY ARGUE THAT THE DOCUMENTS CONCERNED WERE INDEED 'FOREIGN'' BUT WE

AGREE THAT WE MUST AVOID REFERENCE TO THE ''REPUBLIC OF CHINA'', AND

ANY OTHER NOMENCLATURE WHICH THE CHINESE WOULD FIND OFFENSIVE, IN DOCUMENTS PRESENTED TO THE COURT AND IN THE CHIEF SECRETARY'S CERTIFICATE. GRANTED THIS, THERE IS SOME HOPE THAT THE CHINESE MIGHT ADOPT A PRAGMATIC ATTITUDE TO OUR PROPOSED SOLUTION FOR THE

DILEMMA.

3. IF IT IS AGREED THAT HONG KONG SHOULD PROCEED IN THIS WAY, WE

THINK THE CHINESE SHOULD BE INFORMALLY BRIEFED AND TOLD HOW WE

PROPOSE TO SECURE THE NECESSARY EVIDENCE, STRESSING THE DEFENSIVE

POINTS IN PARA 11 OF TUR. WE THINK THIS WOULD BEST BE DONE IN A

LOW-KEY WAY, AND SUGGEST THAT AT LEAST INITIALLY HONG KONG MIGHT

RAISE THE MATTER LOCALLY WITH NCNA.

-

-

EVANS

YYYY

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CONFIDENTIAL