TNAG-2245-FCO40-3228-Bank-of-Credit-and-Commerce-Hong-Kong-Limited-(BCCHK)-1991 — Page 62

From the Principal Private Secretary

10 DOWNING STREET

LONDON SWIA 2AA

HID KC PS

PS / Lord Caithness

Ni Burns

Liz Grimes 13/5 віз

Ma Slove

12 September 1991

Pq

The Prime Minister has asked me to thank you for your letter of 4 September.

The Prime Minister fully understands and sympathises with the hardship that the depositors of Bank of Credit and Commerce Hong Kong Ltd., including your friends, are feeling as a result of the closure of the bank. However, with your knowledge and experience of Hong Kong, you will be aware that the conduct of Hong Kong's financial and monetary policy is entirely a matter for the Hong Kong Government. It would, therefore, not be appropriate for the Prime Minister to intervene in this matter.

The Prime Minister is aware that the Hong Kong Government is working hard to find the best solution for the depositors and other creditors of BCCHK. Although the sale of BCCHK has not been concluded and is still by no means certain, Hong Kong is currently the only place in the world where negotiations concerning the sale of the BCCI Group, without financial assistance from public funds, are at such an advanced stage.

Richard Margolis, Esq.

ANDREW TURNBULL