CONFIDENTIAL
CALL BY SIR CHARLES POWELL ON THE SECRETARY OF STATE: 27 JULY
Background
Chinese Discrimination/CT9 (Container Terminal 9)
1.
Jardines have an interest in the consortium selected to build CT9. The Chinese continue to withhold their agreement to the land grant despite our having agreed to their request to discuss it in the JLG.
New Kuala Lumpur International Airport
2.
Jardines are involved through Gammon in the Anglo-Japanese consortium seeking business on the new Kuala Lumpur International Airport. We do not know how much Jardines stand to make from their involvement (the total UK share of the consortium's business could run to hundreds of millions).
Hong Kong Takeover Code
Jardines are seeking exemption from the Hong Kong Takeover Code in order to reduce the possibility of expropriation of their assets after 1997.
3.
4. On 28 May, Jardines made a public announcement that amendments will be introduced in Bermuda to the Jardine Matheson Holdings Act to incorporate the principle of the London Takeovers Code into the private company legislation governing the five Jardine companies. The Hong Kong Securities and Futures Commission (SFC) have been informed by Jardines that the company will make an application for exemption from the Hong Kong Takeover and Mergers Code after legislation has been enacted in Bermuda.
5.
SFC have advised Jardines that the Bermuda proposal is unlikely to make any substantial difference as long as the substance of Jardines business remains in Hong Kong. Hong Kong Government's role has been to try and bring the SFC and Jardines together to reach an acceptable solution.
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CONFIDENTIAL
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