TNAG-1950-FCO40-2778-Hong-Kong-Exchange-Fund-1989 — Page 6

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2862

OF 300507Z AUGUST 89

20

CONFIDENTIAL

HKC105/1

TOP COPY Q DIST ?

37

066422

MDLIAN 6453

FOR HKD

YOUR TELNO 1724: EXCHANGE FUND ORDINANCE APPROVED INVESTMENTS

1. THE SECRETARY OF STATE'S BLANKET APPROVAL HAS ALREADY

BEEN GIVEN FOR CERTAIN GENERAL CATEGORIES OF SECURITIES.

2. AUTHORITY WAS GIVEN IN TELNO 530 OF 29 JUNE 1972 FOR FOREIGN GOVERNMENT BONDS, FOREIGN GOVERNMENT GUARANTEED BONDS AND BONDS ISSUED BY FOREIGN ORGANISATIONS SIMILAR TO UK LOCAL

AUTHORITIES TO BE ACQUIRED.

3. IN YOUR TELNO 627 OF 11 AUGUST 1977, THE LIST OF APPROVED SECURITIES WAS EXPANDED WHEN YOU APPROVED THE ADDITION OF

BANKERS ACCEPTANCES AND OBLIGATIONS GUARANTEED BY CERTAIN

STATE AND PROVINCIAL GOVERNMENTS. AT THE SAME TIME THE PHRASE

QUOTE FOREIGN ORGANISATIONS SIMILAR TO UK LOCAL AUTHORITIES UN- QUOTE WAS DEFINED.

4. HOWEVER, SPECIFIC APPROVAL HAS BEEN GIVEN IN THE CASE OF EQUITY INVESTMENTS AND IN YOUR TELNO 572 OF 5 JUNE 1981 YOU GAVE APPROVAL FOR INVESTMENT IN CABLE AND WIRELESS HONG KONG. FURTHER APPROVAL FOR SPECIFIC EQUITY INVESTMENTS, INCLUDING HACTL, WAS GIVEN IN YOUR TELNO 772 OF 12 AUGUST 1983.

5. GIVEN THAT WE HAVE NOW ESTABLISHED THAT THE PROPOSED DEBENTURE IS A SECURITY UNDER SECTION 3(2) AND THAT HACTL IS

AN ACCEPTABLE NAME IN THAT YOU HAVE AUTHORISED INVESTMENT IN THE COMPANY'S SHARES, IT WOULD APPEAR THAT IT IS NOT NECESSARY FOR YOU TO HAVE SIGHT OF THE AGREEMENT AND THAT YOUR APPROVAL TO

TAKE UP THE HACTL DEBENTURE WILL SUFFICE.

FORD

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