TNAG-2549-FCO40-3724-Hong-Kong-Cathay-Pacific-Airways-1992 — Page 25

CONFIDENTIAL COMMERCIAL-IN-CONFIDENCE

014553

MDHIAN 1602

CONFIDENTIAL

COMMERCIAL-IN-CONFIDENCE

FM PEKING

TO DESKBY 11030OZ HONG KONG

TELNO 95

OF 110215Z JULY 92

AND TO DESKBY 11093OZ FCO

HKC 181/36

Submitted

см

HONG KONG STRICTLY PERSONAL FOR FINANCIAL SECRETARY AND POLAD FCO STRICTLY PERSONAL FOR RICKETTS, HKD

CAAC PURCHASE OF CATHAY PACIFIC SHARES

1.

STANLEY HUI, THE SWIRE'S REPRESENTATIVE HERE, TELEPHONED ME THIS MORNING (11 JULY) TO SAY THAT ARRANGEMENTS HAD BEEN COMPLETED FOR THE PURCHASE BY CAAC OF A BLOCK OF CATHAY PACIFIC AIRWAYS SHARES HELD BY THE HONG KONG BANK. THE AGREED PRICE WAS IN THE REGION OF HONG KONG DOLLARS 340 MILLION. YAO KANG HAD VISITED PEKING FOR THE FINAL NEGOTIATIONS (HONG KONG TELNO 1850 REFERS TO HIS MEETING WITH LU PING).

2.

HUI SAID THAT THE DEAL WOULD BE SIGNED IN HONG KONG EARLY ON MONDAY 13 JULY, BEFORE TRADING BEGAN ON THE STOCK EXCHANGE. AT HUI'S REQUEST WE ARE SEEKING URGENT APPROVAL FOR VISAS FOR THE CHINESE OFFICIALS INVOLVED, ONE OF WHOM IS BAO TONGFANG OF THE BANK OF CHINA (WE DO NOT YET HAVE THE FULL LIST).

3.

HUI EXPLAINED THAT IT WAS THESE DEVELOPMENTS WHICH HAD OBLIGED PETER SUTCH, THE NEW CHAIRMAN OF SWIRE'S, TO CANCEL AN INTRODUCTORY VISIT TO PEKING EARLY NEXT WEEK CHE HAD BEEN DUE TO LUNCH WITH ME ON 13 JULY). HE HAD DECIDED TO GO TO TAIWAN INSTEAD, TO EXPLAIN WHAT WAS HAPPENING TO SWIRE'S PARTNERS THERE.

4. RESIDENT CLERK PLEASE INFORM RICKETTS, HKD.

MCLAREN

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