TNAG-2275-FCO40-3274-Hong-Kong-and-the-media-1991 — Page 62

AIDE MEMOIRE

MEETING WITH THE NEW CHINA NEWS AGENCY

Ime NUNA came 111

÷

on

repruary.

ley very quickLY Idiseu the question of the listing and asked if it was true that Jardines was going to delist shortly.

I then took them through all the key points:

a)

b)

1)

e)

1)

g)

As had been widely reported in the press over the past two years, it was true that Jardines had generally been unhappy about the trends in the regulatory environment in Hong Kong and, in particular, the trend towards regulation of international companies. I said that while some changes were needed the regulatory system, it was my view that there had been some over-reaction to the events of October

1987

It was tive that discussions were going on between Jardines and the regulators regarding our future status.

It was Important to understand that Jardines remained committed to Hong Kong and we hoped to stay for another 150 years etc. Indeed we had increased our investments in Hong Kung Ovel the past 3 years.

However, It had to be recognised that Jardines was an international company, but with a major business in Hong Kong and, as such, it was more appropriate that our primary regulator should be in London rather than Hong Kong. This was entirely ginal zollowing the setting up of our Bermuda holding company in 1984.

In the context of development of Hong Kong as an international financial centre, it was important that a new category of "trading only" listings should be set up and what we were looking for was similar to the status of Cable & Wireless and News Corp. I emphasized that this category could become particularly important in the years to come.

It must be appreciated that Singapore was a threat to Hong Kong's role as a financial centre. While it was well known that Singapore had tough legislation, they were being quite flexible in the manner in which they approached the securities industry,

It needed to be made clear that Jardines was not trying to escape from the laws of Hong Kong. The company would remain subject to all hong kong laws, including those governing securities transactions.

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