TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 129

CONFIDENTIAL

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There are contingent liabilities arising out of a guarantee

given pursuant to section 3(1) of the Exchange Fund Ordinance

to the China International Trust and Investment Corporation in connection with the Corporation's capital injection into The Ka

Wah Bank Limited. The exact amount of these contingent

liabilities cannot be determined at this time but is unlikely

to be more than $3,500 million.

There are contingent liabilities, the exact amount of which

cannot be determined at this time, but is unlikely to be more than $250 million excluding interest, in respect of an indemnity given pursuant to section 3(1) of the Exchange Fund

Ordinance to The Wing On Bank Limited in relation to its net

worth as at 26 June 1986.

CONFIDENTIAL