TNAG-2754-FCO40-3971-Business-matters-in-Hong-Kong-acquisition-of-Midland-Bank-by-1993 — Page 46

AUTHORISED

FOR DESPATCH

DRAFT

LETTER OF REQUEST BY U.S. DISTRICT

1. AS YOU KNOW, WE HAVE INVESTED TIME AND EFFORT IN PERSUADING THE

U.S. TO SEEK TO OBTAIN THE INFORMATION THEY WANT FROM HKSB AND SCB

BY ISSUING LETTERS OF REQUEST RATHER THAN MANDATORY SUBPOENAS. WE

WERE THEREFORE DISAPPOINTED TO LEARN THAT THE SUPREME COURT OF HONG

KONG HAS SET ASIDE THE PREVIOUS ORDER GIVING EFFECT TO THE U.S.

LETTER OF REQUEST.

2. WE UNDERSTAND FROM WASHINGTON THAT SPRINGER (DOJ) HAS DISCUSSED

THE POSSIBILITY OF WITH THE HONG KONG CROWN SOLICITOR RECASTING THE REQUEST SO THAT IT

SOL

CAN BE ISSUED ISSUED BY THE ALABAMA DISTRICT COURT. WE SHOULD BE

GRATEFUL TO KNOW HOW FAR THESE DISCUSSIONS HAVE PROGRESSED, AND HOW

YOU SEE MATTERS DEVELOPING. DO YOU FORESEE ANY OTHER POTENTIAL

PROBLEMS? WHAT IS THE LIKELY TIMESCALE?

3. IT IS REASSURING THAT THE DOJ, WHILST OBVIOUSLY IRRITATED BY

THE SETTING ASIDE OF THE PREVIOUS ORDER, IS PREPARED TO CONTINUE TO

SEEK THE INFORMATION IT WANTS THROUGH LETTERS OF REQUEST RATHER

THAN RESORTING TO MANDATORY SUBPOENAS. BUT WE STILL NEED TO

CONVINCE THE DOJ THAT LETTERS OF REQUEST OFFER A RELIABLE AND

AND

TIMELY WAY OF OBTAINING INFORMATION, WHICH ARE TO BE PREFERRED TO

MANDATORY SUBPOENAS. WE SHOULD THEREFORE BE GRATEFUL IF YOU WOULD