Message-ID: <9683446.1075859678866.JavaMail.evans@thyme> Date: Wed, 29 Nov 2000 00:31:00 -0800 (PST) From: rgrove@isda.org To: board@isda.org, apapesch@isda.org, esebton@isda-eur.org, lmarshall@isda.org, pmartinez@isda.org, kdhulster@isda-eur.org, rpickel@isda.org, rainslie@isda.org, skawano@isda.org, rmetcalfe@isda-eur.org, scarey@isda.org Subject: Letter from Chinese SAFE to ISDA Concerning Derivatives Transacti ons with Chinese Counterparties Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Richard Grove X-To: ISDA BOARD , Angela Papesch-Sing , Emmanuelle Sebton , Louise Marshall , Pedro Martinez , "Katia d'Hulster" , Robert Pickel , Ruth Ainslie , Shigeki Kawano , Richard Metcalfe , Stacy Carey X-cc: X-bcc: X-Folder: \Mark_Haedicke_Dec2000_1\Notes Folders\Notes inbox X-Origin: Haedicke-M X-FileName: mhaedic.nsf To Members of the ISDA Board and ISDA Policy Staff: ISDA has received the attached reply from the Chinese SAFE regarding our GITIC-related inquiries. Our initial reaction to this letter is that it contains at least some good news in that SAFE has stated that it is not necessary to obtain transaction-specific for derivatives transactions with Chinese counterparties that are conducted "for hedging purposes." We will ask Allen & Overy Hong Kong to prepare a brief memo on the implications of this letter for the GITIC case and for more general dealings with Chinese counterparties. This memo, together with our original letter to SAFE and the attached SAFE reply, will be circulated to all ISDA members as quickly as possible. Rick -----Original Message----- From: Chin.Chong.Liew@AllenOvery.com [mailto:Chin.Chong.Liew@AllenOvery.com] Sent: Wednesday, November 29, 2000 4:00 PM To: Brian.yiu@hk.standardchartered.com; Dennis.Wan@chase.com; eric@tmihk.com; gillis@sifl.com.hk; nakada@sifl.com.hk; kenneth.j.blomster@hk.arthurandersen.com; Laura.schramm@hk.pwcglobal.com; lyftan@lehman.com; Chin.Chong.Liew@AllenOvery.com; Magnus.spencer@csfb.com; Michael.J.Suppan@bankofamerica.com; Kiyota@fcmc.com; Philip.tsao@gs.com; quentin_hills@hk.ml.com; Richard.jackson@jfleming.com; Stephane.cuny@socgen.com; Voons@ms.com; Tricia.bowden@gs.com; Zhangkun@mailcity.com; rgrove@isda.org; rpickel@isda.org; RAinslie@isda.org Cc: azam.mistry@hsbc.com; apapesch@isda.org Subject: Reply from SAFE I attach for your information the reply which Azam received from SAFE today (together with an English translation) in response to ISDA's letter of 10th August, 2000 . The good news is that SAFE agreed that PRC financial institutions conducting derivative transactions for hedging purposes in the international financial market should comply with the applicable PRC law and that it would not be necessary for them to obtain a transaction specific approval from SAFE. Kind regards, Chong (See attached file: safe.PDF)(See attached file: safetranslation.PDF) ====================================================================== This e-mail is confidential and may also be privileged. If you are not the intended recipient please notify us immediately by telephoning the Technology Services Helpdesk on +852 2974 7111. You should not copy this e-mail or use it for any purpose nor disclose its contents to any other person. Allen & Overy 9th Floor Three Exchange Square Central Hong Kong Tel: +852 2974 7000 Fax: +852 2974 6999 http://www.allenovery.com A list of the firm's principals will be provided on request Authorised by Chris Roberts ====================================================================== ====================================================================== This email is confidential and may also be privileged. If you are not the intended recipient please notify us immediately by telephoning +44 (20) 7330 3000 and requesting the Technology Services Helpdesk. You should not copy it or use it for any purpose nor disclose its contents to any other person. Allen & Overy One New Change London EC4M 9QQ Tel:+44 (20) 7330 3000 Fax: +44 (20) 7330 9999 General Email: Helpdesk@allenovery.com www: http://www.allenovery.com Allen & Overy is a solicitors' partnership. A list of the names of partners and their professional qualifications is open to inspection at the above office. The partners are either solicitors or registered foreign lawyers. ====================================================================== - safe.PDF - safetranslation.PDF