TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 138

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FM HONG KONG

TO IMMEDIATE FCO

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RECEIVED IN REGISTRS

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15 JAN 1988

REGISTRY

DESK OFFICER

TELNO 199

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Action Taken

OF 14130OZ JANUARY 88

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147067 MDHIAN 3599

PERSONAL FOR HUM HKD FROM GOVERNOR.

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MY TELNO 99 : HONG KONG STOCK EXCHANGE

INVESTIGATION BY ICAC.

MR. RONALD LI HAS BEEN SUMMONED TO THE ICAC THIS AFTERNOON. HE HAS BEEN CHARGED ON ONE COUNT OF ACCEPTING AN ADVANTAGE AS AN AGENT,

CONTRARY TO SECTION 9(1)B OF THE PREVENTION OF BRIBERY ORDINANCE, IN CONNECTION WITH THE ISSUE OF SHARES IN KUMAGAI GUMI CHONG KONG) LTD IN MARCH 1987. HE WILL APPEAR IN COURT TOMMORROW. THE ICAC HAVE ONLY ANNOUNCED TODAY THE FACT THAT A CHARGE HAS BEEN BROUGHT AGAINST MR. LI UNDER SECTION 9, BUT THE FULL FACTS WILL BE PUBLIC WHEN HE APPEARS IN COURT.

2. IN THE MEANTIME THE ICAC ARE CONTINUING TO INVESTIGATE THE KUMAGAI CASE. THEY MAY BRING CHARGES AGAINST OTHERS INVOLVED AT A LATER DATE. THEY ARE ALSO INVESTIGATING A NUMBER OF OTHER CASES INVOLVING SHARE ISSUES WITH THE AIM OF BUILDING UP A PATTERN OF BEHAVIOUR WHICH WILL SUBSTANTIATE ALLEGATIONS OF CORRUPTION. ADVISED THAT IT WILL TAKE SOME TIME TO COMPLETE THIS WORK.

WILSON

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HKD

PS

PS LORD GLENARTHUR

PS/PUS

MR GILLMORE

MR MCLAREN

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