TNAG-2125-FCO40-3032-Banking-situation-in-Hong-Kong-1990 — Page 49

CONFIDENTIAL

нис

10212

CONFIDENTIAL

RECE

BY

FM HONG KONG

Mai 1990

TO IMMEDIATE FCO

Y

TELNO 1525

OF 09120OZ MAY 90

16212

0771503/ MDHIAN 9850-

PERSONAL FOR PAUL HKD FROM GOVERNOR

MIPT: JARDINE FLEMING AND CO BANKING LICENCE: KESWICK LETTER TO THE PRIME MINISTER

1. MIPT GIVES, I HOPE, ENOUGH OF THE BACKGROUND. YOU MAY WISH TO RECOMMEND TO NO 10 THAT THE PRIME MINISTER REPLIES ON THE FOLLOWING LINES:

I) DECISIONS ON BANKING LICENCES ARE A MATTER FOR HONG KONG AND THE

EXECUTIVE COUNCIL.

II) SHE UNDERSTANDS THAT, UNDER THE PUBLISHED CRITERIA FOR A FULL LOCAL BANKING LICENCE, JF AND CO HAVING PARENTS INCORPORATED OUTSIDE HONG KONG, DOES NOT MEET THE REQUIREMENT OF BEING PREDOMINANTLY BENEFICALLY OWNED BY HONG KONG INTERESTS AND THEREFORE HAS TO MEET CERTAIN CRITERIA ABOUT SIZE ETC WHICH IT DOES NOT MEET.

III) SHE UNDERSTANDS ALSO THAT, UNDER A RECENT CHANGE TO THE RULES, IT IS NOW POSSIBLE FOR JF AND CO TO REFER TO ITSELF AS A MERCHANT BANK UNDER THE ARRANGEMENTS FOR A RESTRICTED LICENCE BANK. SHE HOPES THIS WILL HELP THEM IN THEIR BUSINESS BOTH IN HONG KONG, AND IN THE REGION.

IV) SHE IS PLEASED TO SEE HOW SUCCESSFUL THE JARDINE FLEMING GROUP HAVE BEEN IN DEVELOPING THEIR BUSINESS IN THE REGION SINCE THEY WERE SET UP 20 YEARS AGO AND IN HELPING TO BUILD UP HONG KONG AS AN INTERNATIONAL FINANCIAL CENTRE.

WILSON

YYYY

1

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