TNAG-2245-FCO40-3228-Bank-of-Credit-and-Commerce-Hong-Kong-Limited-(BCCHK)-1991 — Page 96

CONTRIBUTION TO BRIEFING FOR MR VAZ'S CALL ON

THE SECRETARY OF STATE, 9 SEPTEMBER

HONG KONG AND THE BCC (HONG KONG)

file

fate (46

нив

Has 12/3

Points to Make

(40)

- Glad to see (his letter of 1 September) that you had a

useful visit to 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.

L

-

Clearly the closure is very distressing for depositers

involved. But understand that sale of the bank to the

Kong

Hong, Chinese Bank is possible. Stilllong 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.

X_

K

JIFAAZ/1

JRB