TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 160

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2275

OF 14084OZ JUNE 88

CONFIDENTIAL

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134142 MDLIAN 5028

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105/1

TOP CORY. @ DIST ?

REF OUR TELNO 1527

EXCHANGE FUND ORDINANCE

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APPROVED INVESTMENTS

1. FURTHER TO TUR, THE PROBLEM THAT HAS ARISEN OVER QUOTE SECURITIES UNQUOTE WAS GREETED WITH UNIVERSAL DISMAY AT THE HACTL BOARD MEETING HELD ON 27 APRIL 1988, FOR IF THE EXCHANGE FUND DOES NOT PARTICIPATE IN THE PROPOSED LOAN, THEN THE EXISTING JOINT OWNERSHIP ARRANGEMENT WOULD OBVIOUSLY HAVE TO BE REVIEWED.

2. THE BOARD FELT THAT AS THE GOVERNMENT HAD GRANTED TO HACTL AN EXCLUSIVE RIGHT AND FRANCHISE TO CARRY ON BUSINESS AS THE IN TERMINAL HANDLERS OF CARGO CARRIED OR INTENDED TO BE CARRIED BY AIR AT THE AIRPORT AND THAT AS ALL SUMS CHARGED BY THE COMPANY FOR THE SERVICES IT PROVIDES WERE SUBJECT TO THE APPROVAL OF THE DIRECTOR OF CIVIL AVIATION, THIS SHOULD BE DEEMED TO BE SEEN AS COMPLYING WITH THE SECURITIES REQUIREMENT OF THE EF ORDINANCE.

3. WE SHOULD BE PLEASED TO MAKE A COPY OF THE FRANCHISE DEED

AVAILABLE TO YOU IF YOU CONSIDER THIS WOULD BE HELPFUL. IN THIS REGARD, PLEASE ADVISE AS TO WHOM IT SHOULD BE SENT.

WILSON

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HKD

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DISTRIBUTION

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