TNAG-1950-FCO40-2778-Hong-Kong-Exchange-Fund-1989 — Page 52

PJ YAKC

Mr Edwards, Legal Adviser

vis

CONFIDENTIAL

Reference..

HKC 105/1

EXCHANGE FUND ORDINANCE APPROVED INVESTMENTS

من

A

x1

C 21

1 Hong Kong sought approval last year (telno 1243) to invest in interest-bearing shareholder loans. Legal Advisers questioned whether such an investment constituted a security We Left Hong Kong to Look further into the matter. (FCO telno 1586 to Hong Kong).

·

2. We have now received Hong Kong telno 2034 in which they report that they have decided to pursue the debenture route, with the investment now doubled to HK$30 million.

3. I should be grateful if you would advise whether the debenture investment Hong Kong now propose falls within the provisions of the Exchange Fund Ordinance and whether it can consequently be approved.

مسلية

bolige

M Wameshes, kegel bel

File attached

3 July 1989

Mr Holroyd

Mr Edwards

F B Holroyd

Hong Kong Department WH312

270 2653

Kuhanded 10/2

ыкі

has asked me to deal with this

2 I should be grateful if you

could attach the

Foling Legal Advisers' views referred to at xl above. !!(ms) In returning the papers please also attach a

105

CONFIDENTIAL

ttacked copy of the Ordinance (there is one on

CODE 18-77

105/1). 7/7/89.

HKC

C.A. homersley

Legal Advisers