TNAG-2183-FCO40-3120-Hong-Kong-nationality-international-support-1990 — Page 78

CONFIDENTIAL UK COMMS ONLY

580

125114 MDHOAN 8953

CONFIDENTIAL

UK COMMS ONLY

FM FCO

TO IMMEDIATE HONG KONG

TELNO 1880

OF 10180OZ OCTOBER 90

AND TO IMMEDIATE GIBRALTAR

SIC

FROM PAUL, HKD

HAD 340

RECEIVED IN REGISTR)

11 OCT 1990

DESK :FFICER

INDEX

PA

fant, (c)

Ellash a thes lait

1st to spirit away 182 6

The Exchange Fund +

Mamyterin (joke)

1/10

h

116 MS

Mr Hague MA

(Ho Ho)

Jillia

HONG KONG PERSONAL FOR GOVERNOR

GIBRALTAR PERSONAL FOR GOVERNOR

ALLEGED ASSET TRANSFER FROM HONG KONG TO UK

1. MR MICHAEL FALLON MP WROTE TO MR WALDEGRAVE ON 20 SEPTEMBER ENCLOSING A FAX MESSAGE DATED 17 SEPTEMBER HE HAS RECEIVED FROM GORDON MCFALL OF THE MORTGAGE BUREAU GIBRALTAR, PROPOSING A TRANSFER FROM HONG KONG TO THE UK 30 (THIRTY) BILLION (BILLION) US DOLLARS. WE ARE FAXING TO PS/GH AND GIBRALTAR COPIES OF THE LETTER AND FAX (WHICH WE HAVE JUST RECEIVED).

2.

THE FAX ALLEGES THAT THE INDIVIDUALS CONCERNED ARE QUOTE OLD ESTABLISHED CLIENTS OF ERIC CELLUL, BARRISTER AT LAW, SUITE 10, GIBRALTAR HEIGHTS, GIBRALTAR, AND THAT THEY ARE AN OLD CHINESE FAMILY WHO HAVE BROUGHT TOGETHER THEIR ASSETS IN THE LAST 12 MONTHS UNQUOTE. THE FAX SAYS THAT QUOTE IN VIEW OF THE CURRENT MIDDLE EAST CRISIS WE HAVE BEEN INSTRUCTED TO OFFER HM GOVERNMENT THE USE OF 10 (10) BILLION US DOLLARS FOR A PERIOD OF 3-5 YEARS AT A NOMINAL INTEREST RATE UNQUOTE.

3.

WE HAVE CONSULTED THE BANK OF ENGLAND, WHO ARE EXTREMELY SCEPTICAL, AS ARE WE. (THEY TELL US THAT THE SUM OF 30 BILLION DOLLARS WOULD REPRESENT THREE QUARTERS OF THE UK'S GOLD AND FOREIGN EXCHANGE RESERVES.) THE BANK WILL NOT TAKE THE MATTER ANY FURTHER UNLESS FURTHER DETAILS ARE MADE AVAILABLE AS TO THE IDENTITY AND BONA FIDES OF THE CLIENTS.

4.

IT SEEMS TO US THAT IF ANYONE HAD BEEN ATTEMPTING TO REALISE OR BRING TOGETHER ASSETS OF THAT ORDER IN HONG KONG OVER LAST 12 MONTHS IT CANNOT HAVE FAILED TO ATTRACT ATTENTION. THE FAX ALLEGES THAT NATIONAL WESTMINSTER PLC QUOTE DEALERS ROOM UNQUOTE IN LONDON HAVE REFERRED THE CLIENTS TO THEIR HONG KONG BRANCH FOR A DECISION.

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CONFIDENTIAL UK COMMS ONLY