TNAG-2245-FCO40-3228-Bank-of-Credit-and-Commerce-Hong-Kong-Limited-(BCCHK)-1991 — Page 31

RESTRICTED

FM FCO

TO PRIORITY HONG KONG

TELNO 1748

OF 24100OZ SEPTEMBER 91

RESTRICTED

E thans 602/3

160367

MDLOAN 4694

نام

PERSONAL FOR GOVERNOR FROM RICKETTS, HKD

YOUR TELNO 2978: BCCI: ENQUIRY BY LORD JUSTICE BINGHAM

1.

YOU ARE RIGHT IN ASSUMING THAT THE TERMS OF REFERENCE OF THE

BINGHAM ENQUIRY RELATE ONLY TO BANKING SUPERVISION IN THE UK (THE FULL TERMS OF REFERENCE ARE: ''TO ENQUIRE INTO THE SUPERVISION OF BCCI UNDER THE BANKING ACTS: TO CONSIDER WHETHER THE ACTION TAKEN BY ALL THE UK AUTHORITIES WAS APPROPRIATE AND TIMELY: AND TO MAKE RECOMMENDATIONS''). OF DEPENDENT TERRITORIES LORD BINGHAM HAS SO FAR ONLY CONTACTED THE CAYMANS. IF HE DOES DECIDE TO APPROACH YOU HE WILL WRITE DIRECT, ALTHOUGH FCO HAS OFFERED TO ACT AS A POSTBOX. WE WILL KEEP YOU INFORMED.

2.

THE ENQUIRY IS AWARE OF HONG KONG'S AUTONOMY IN THE CONDUCT OF ITS FINANCIAL AFFAIRS. WE ASSUME THAT IN CONTACTING DEPENDENT TERRITORIES THEY WILL BE LOOKING FOR ANY EVIDENCE THAT SHEDS LIGHT ON HOW THE UK AUTHORITIES PERFORMED THEIR SUPERVISORY ROLE. DEPENDING ON THE TERMS OF ANY APPROACH FROM THE ENQUIRY YOU MIGHT THEREFORE REAFFIRM HONG KONG'S AUTONOMY IN THE AREA OF BANKING SUPERVISION, BUT AGREE TO CONDUCT A SEARCH OF FILES TO SEE WHETHER THERE IS ANY INFORMATION HONG KONG CAN OFFER WHICH BEARS ON THE PERFORMANCE OF UK AUTHORITIES. THE AIM WOULD BE TO SHOW THAT HONG KONG HAD NOTHING TO HIDE, WHILE DRAWING A DISTINCTION BETWEEN HONG KONG'S SUPERVISION OF ITS OWN FINANCIAL AFFAIRS, AND ITS COMMUNICATIONS (IF ANY) WITH UK AUTHORITIES ON THE SUBJECT OF BCCI.

HURD

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