TNAG-2754-FCO40-3971-Business-matters-in-Hong-Kong-acquisition-of-Midland-Bank-by-1993 — Page 69

XG3L/2042

MONETARY CONDITIONS LETTER

The Financial Secretary Government Secretariat

Central Government Offices

Hong Kong

Dear Sir

HSBC Holdings plc Group Head Office 10 Lower Thames Street London EC3R 6AE

The Hongkong and Shanghai Banking Corporation Ltd ("the Company")

This letter of undertaking is given pursuant to a resolution of the Board of HSBC Holdings plc on

and replaces our letter of 3 April 1991.

1

2

The Board of HSBC Holdings plc has approved the content of a letter of undertaking which has been issued to the Financial Secretary by the Company, the text of which is annexed to this letter. HSBC Holdings plc affirms that its intention is to give every support to the Company to assist it in fulfilling the undertakings set out in that letter.

HSBC Holdings plc undertakes that, should the policies it intends to pursue with regard to the disposition of assets and liabilities held in HSBC Holdings plc's group books in Hong Kong dollars have the potential for destabilising

monetary conditions in Hong Kong, there will be prior consultation with the Hong Kong authorities and the Bank of

England.