TNAG-2476-FCO40-3606-Possible-extension-of-Foreign-Corporations-Act-1991-to-Hong--1992 — Page 4

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO TELNO 445 ·

Mr Furryess

Spoke. 25/2 Drax)

for a view p2 25/2

MARK

CONFIDENTIAL

Ми

Buster

Do we

need to smále

on

reply? Has My Buster go any views

OF 160051Z FEBRUARY 92

tel.

Murs Mayer! 117660 3

isi sentence of pera TOP COPY

Q DIST?

MDLIAN 4555.

m

2418

R+R

YRTELNO 94: FOREIGN CORPORATIONS ACT 1991

Zel

M27/2

&

pes.

1. FROM OUR POINT OF VIEW IT IS A PITY THAT THE UK ACT CANNOT BE EXTENDED TO US. IN THE LIGHT OF THIS FACT, AND BECAUSE THE PROBLEM IS A SIGNIFICANT ONE WHICH WE BELIEVE WE MUST TAKE STEPS TO ADDRESS, WE INTEND TO DRAFT LOCAL LEGISLATION VIRTUALLY IDENTICAL TO THE UK'S (OF COURSE OURS WOULD REFER TO TERRITORIES NOT RECOGNISED AS STATES (NEXT THREE WORDS UNDERLINED) BY THE UK).

2. WE DO NOT SEE ANY NEED TO BRIEF THE CHINESE ABOUT SUCH LEGISLATION. HOWEVER, IF THEY WERE TO ASK ABOUT IT, WE WOULD EXPLAIN THAT WE WERE COPYING HMG, FOR THE SAME (COMMERCIAL) LEGAL REASONS: AND THAT THE CHINESE NO DOUBT NOTED THE UK BILL AT THE TIME.

3. SUCH LEGISLATION COULD NOT SURVIVE 1997 WITHOUT ADAPTATION GIVEN THAT IT WILL REFER TO TERRITORIES NOT RECOGNISED BY THE UK. IF WE WISH TO CONTINUE IN SOME FORM BEYOND THAT DATE, WE WILL NEED TO CONSULT THE CHINESE AT THE ADAPTATION STAGE. THIS COULD BE A VERY DIFFICULT EXERCISE.

WILSON

YYYY

MAIN

66

LIMITED

HKD

FED

ERD

PUSD WIAD

DISTRIBUTION

68

RAD

PS/LORD CAITHNESS

PS/PUS

SIR J COLES

MR BURNS

MS BROOKS, LEGAL ADVISERS

PAGE

CONFIDENTIAL

1