TNAG-1769-FCO40-2523-Hong-Kong-mergers-involving-banks-and-other-financial-instit-1988 — Page 200

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MDHOAN 0702

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FM FCO

TO DESKBY 12010OZ HONG KONG TELNO 692

OF 11170OZ MARCH 88

MKC 102 HKC

IN FT.

25 MAR 1966

OFFI

PA

3

TOP CODY Q DIS) 7

FOR ALLCOCK, ATTORNEY GENERAL'S CHAMBERS FROM FIFOOT DEUTSCH BANK (MERGER) BILL

1. WE WOULD HAVE THOUGHT THAT THE EXPERIENCE WITH THE LLOYDS AND BANK OF SCOTLAND BILL WOULD HAVE SHOWN THAT PRIVATE MEASURES OF THIS NATURE CANNOT BE DEALT WITH AT SHORT NOTICE. SECTION

4 OF THE LLOYDS BANK ORDINANCE IS NOT A SUITABLE PRECEDENT: THE DRAFT SENT TO US IT IS DEFECTIVE FOR EXTRA-

TERRITORIAL REASONS. THE EQUIVALENT PROVISION OF THE BANK OF SCOTLAND ORDINANCE IS A MORE SUITABLE POINT OF DEPARTURE. THE LONG TITLE AND PREAMBLE SHOULD ALSO BE AMENDED TO INDICATE THAT THE BILL IS NOT EFFECTING THE MERGER BUT FACILITATING IT. 2. WE HAVE BEEN IN CONTACT WITH CLIFFORD CHANCE AND MADE THE FOLLOWING POINTS TO THEM:

I) WHAT IS THE NECESSITY OR REASON FOR THE BILL?

II)

III)

WHAT EVIDENCE HAS BEEN PRESENTED TO THE LEGISLATURE TO SUPPORT THE PREAMBULAR PARAGRAPHS?

THE DRAFTING APPROACH AS IN THE PRECEDING PARAGRAPH. WE UNDERSTAND THAT DENNIS WILL BE IN TOUCH WITH YOU.

3. GRATEFUL FOR COMMENTS ON 2(1) AND (II) AND PROPOSED AMENDMENTS.

HOWE

YYYY

ΜΑΙΝ

MINIMAL

10

DISTRIBUTION

11

LEGAL ADVISERS (MR FIFOOT)

HD/HONG KONG DEPT

ADDITIONAL

1

MR FIFOOT, LEGAL ADVISERS

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