TNAG-2245-FCO40-3228-Bank-of-Credit-and-Commerce-Hong-Kong-Limited-(BCCHK)-1991 — Page 86

Hong Kong

Handling of the BCC (Hong Kong) issue a matter for the

Hong Kong Government authorities. But was able to

discuss the issue while in Hong Kong last week.

Clearly the closure is very distressing for depositors

involved. But understand that sale of the bank to the

Hong Kong Chinese Bank is possible. Still a long way to go, but at least the situation looks more hopeful.

[Defensive if asked about HKG's handling]

Hong Kong authorities faced a very difficult decision on 5-6 July. Understandable that they made every effort to keep the bank open - after all no suggestion that fraud was involved. Hope that sale will go ahead and liquidation can be avoided.

JA1AIG/2