TNAG-1950-FCO40-2778-Hong-Kong-Exchange-Fund-1989 — Page 8

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL

36.

CONFIDENTIAL

FM FCO

TO PRIORITY HONG KONG

TELNO 1724

OF 16173OZ AUGUST 89

FROM HKD

35

YOUR TELNO 27157

033564

MDLOAN 7975

HKCIOS

TOP COPY Q DIST?

EXCHANGE FUND ORDINANCE APPROVED INVESTMENTS

1. DEBENTURE INVESTMENT IS APPROVED IN PRINCIPLE BUT WE AWAIT SIGHT OF THE AGREEMENT (PARA 2 OF FUR REFERS) BEFORE GIVING FINAL

722 2034 21 APPROVAL

2. ON A POINT OF GENERAL PRINCIPLE GRATEFUL TO KNOW HOW YOU INTERPRET IN PARA 3(2) OF THE ORDINANCE' ... SECURITIES APPROVED BY THE SECRETARY OF STATE'. WE HAVE NOW ESTABLISHED THAT THE

PROPOSED DEBENTURE IS A SECURITY UNDER 3(2) BUT OUR UNDERSTANDING

OF THE ORDINANCE IS THAT THE SECURITY ITSELF NEEDS SPECIFIC APPROVAL.

3.

WE SHOULD BE GRATEFUL TO KNOW WHETHER THIS IS YOUR

UNDERSTANDING OR WHETHER THE SECRETARY OF STATE'S BLANKET APPROVAL HAS ALREADY BEEN GIVEN FOR CERTAIN GENERAL CATEGORIES OF SECURITIES.

4. IF EACH INVESTMENT DOES INDEED REQUIRE SPECIFIC APPROVAL THIS IS ANOTHER AREA OF THE ORDINANCE WHICH LIKE 3(3) (PARA 4 OF YOUR TELNO 1453 REFERS) COULD BE CONSIDERED FOR REVIEW, ESPECIALLY GIVEN THE IMPLICATIONS FOR POST-1997.

MAJOR

YYYY

ΜΑΙΝ

MINIMAL

HKD

NNNN

20

DISTRIBUTION

20

LEGAL ADVISERS

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