TNAG-2352-FCO40-3422-Visits-by-Lord-Caithness--Minister-of-State-for-Foreign-and--1991 — Page 62

$

CONFIDENTIAL

102151

MDHIAN 5889

PER CENT OF EACH INDIVIDUAL'S DEPOSIT, UP TO A SPECIFIED CEILING.

15. THE BCCI CLOSURE HAS LED TO RUNS ON TWO LOCAL BANKS DAO HENG AND THE INTERNATIONAL BANK OF ASIA (IBA) WHICH ALSO HAVE ARAB SHAREHOLDERS. BOTH ARE, HOWEVER, SOUNDLY BASED. THE EXCHANGE FUND HAS PROVIDED A STAND-BY CREDIT FACILITY TO ENSURE THAT THEY REMAIN IN A SUFFICIENTLY LIQUID STATE TO ENABLE THEM TO MEET THESE DEMANDS FOR CASH. THE IBA HAS NOT YET NEEDED TO MAKE USE OF

THIS FACILITY.

WILSON

YYYY

ΜΑΙΝ

18

LIMITED HKD

PS/LORD CAITHNESS

NNNN

DISTRIBUTION

18

SIR J COLES

MR BURNS