TNAG-2755-FCO40-3972-Banking-situation-in-Hong-Kong-1993 — Page 24

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2. NOV 1993

Saretry of State

8

gB

From: Charles Moore

Date: 16 November 1993

17

Thank

Mr Ricketts

Mr

нат

PS/Mr Goodlad

16/11

Private Secretary

Mm 1%

CC: Miss Brooks, Legal Adviser

Private Secretary

As to boodled is overseas 17 NOV 1993 I have taken a copy of this submission the 21-22/11

for his box which

weekend.

The

APS!

TRGOODLAD 17/11

HONG KONG: OVERSEAS TRUST BANK (ACQUISITION) (AMENDMENT) BILL

1993

Problem

Ave

A

1.

The Secretary of State's approval is required before the

Governor of Hong Kong can assent to the Overseas Trust Bank

(Acquisition) (Amendment) Bill in Hong Kong.

Recommendation

17km.

2. I recommend that the Secretary of State gives such

approval. Legal Advisers have been consulted, and the Bank

of England and HM Treasury are content. I submit a draft telegram to the Governor in Hong Kong.

Background

3.

During the 1980's, seven Hong Kong banks ran into

difficulties. The Hong Kong Government (HKG) took over three, and assisted in the acquisition by the private sector

of the remaining four. Two of the three HKG-owned banks have since been returned to the private sector.

The Overseas Trust Bank (Acquisition) Ordinance, enacted in 1985, provided for the acquisition by HKG of the Overseas

4.

1