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British Consulate-General
9.
Following agreement in principle during the
Prime Minister's visit to Peking, the British and Chinese sides have now signed an agreement on the site for the future British Consulate-General in Hong Kong. Work is now proceeding on the planning of the building. The aim is to have a fitting, prestigious Consulate-General in Hong Kong ready before 1997.
Jardines De-listing Issue
10. In 1984 Jardines, one of Hong Kong major conglomerates re-domiciled from Hong Kong to Bermuda. This year they sought and obtain a listing on the London Stock Exchange. They have also threatened to de-list completely from Hong Kong if their request for a special "trading only" status is not agreed. Their concerns appear to relate to the transition in 1997 and consequent possible Chinese action which might affect their interests in Hong Kong.
11. A major problem regarding Jardine's proposal is the effect of the Hong Kong Takeover Code which provides inter-alia protection for investors. Jardines would not be covered by the London Takeover Code as it is not resident in the United Kingdom. If it were to de-list from Hong Kong, where its major interests and most of its shareholders are, it would remain covered by the Hong Kong Takeover Code for a considerable but indefinite period. Jardines, on the other hand, do not wish to come under Hong Kong's Takeover Code indefinitely, although are willing to be covered up to a maximum four years. Discussions are continuing to find a solution which is acceptable to all interests. Jardines have agreed to postpone a decision on de-listing until after the end of this year.
Meanwhile
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