5.
6.
7.
(c)
as Management Bank it has entered into an agreement with the Financial Secretary to maintain an account with the Exchange Fund in order to facilitate effective monetary management in Hong Kong (the Accounting Arrancaments).
HSBC recognises that it is in its long-term commercial interests not to act in a way with regard to the matters outlined above which would destabilise monetary conditions in Hong Kong or otherwise inhibit effective monetary management in Hong Kong. It notes the close cooperation which it has maintained in the past with the Hong Kong authorities in order to assist in monetary management in Hong Kong. It will continue so to cooperate with the Hong Kong authorities. In particular, HS8C undertakes that, should the policies it intends to pursue with regard to the disposition of the assets and liabilities held in HSBC' 3 group's 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.
HSBC also recognises that its giving notice to the HKAS to terminate, and subsequently terminating, the Management Agreement relating to the Clearing House, and hence also terminating the agreement relating to the Accounting Arrangements, could create problems for monetary management in Hong Kong. It therefore agrees that should it intend to terminate the Management Agreement it will give confidential notice of this intention to the Financial Secretary, and that this should be not less than six months, unless otherwise agreed, in advance of its giving notice to the HKAB. The purpose of this confidential intimation is to afford the Financial Secretary sufficient time to put alternative arrangements in place. HSBC would take all such steps as were reasonable to assist the Hong Kong authorities in this.
For similar reasons, HSBC agrees that were it to decide to cease being a note issuing bank it would give confidential notice of that intention of at least two years, unless otherwise agreed, to the Financial Secretary.
Yours faithfully
W Purves Chairman
No comments yet.
Private notes are available after approval.