TNAG-2754-FCO40-3971-Business-matters-in-Hong-Kong-acquisition-of-Midland-Bank-by-1993 — Page 62

83g/bg.pa/january/4.12

HM Treasury

John Gieve

Under Secretary

MON

Parliament Street London SW1P 3AG

Telephone 071-270 4469

CONFIDENTIAL UNDER THE BANKING ACT

RA Burns Esq

Foreign and Commonwealth Office Whitehall

London

SW1

i

12 January 1993

امستر سودان

سمات

Der Andrew

I attach a letter I have received from the Bank of England setting out the latest position on their talks with HSBC Holdings Plc following the takeover of Midland. As you will see, the Bank is proposing to write to the Financial Secretary in Hong Kong to state that there could be circumstances in which Holdings will not be permitted to support HSBC Ltd. This follows discussion between the Hong Kong Commissioner of banking, HSBC Holdings, and the Bank.

I am sending a copy of this letter to Mr Osborn at the Bank.

sincerely

Jar. Gieve

JOHN GIEVE

Switchboard 071-270 5000

Fax 071-270 5653

Telex 9413704