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To: John Hunt who wrote (9811)	11/30/1997 3:12:00 PM
From: John Hunt	Respond to of 18056

30/11/97 Addition: Colin's Financial Charts, Quotes, News and Stock Market Crash Page users.dircon.co.uk <<< UK newspaper the "Mail on Sunday" reported that UK banks have an estimated 50 billion British pounds (GBP) of loans to Asia, of which GBP 1 billion may turn bad because of the Asian financial meltdown. The lending is predominantly to Japan, Singapore, and Hong Kong in similar amounts. Another linkage is evident in the London property market. South East Asian owners have accounted for up to 60% of London property purchases in luxury development areas of central London. Significant amounts of the London property market is driven by the earnings of traders in the City, London's financial trading centre. In another "Mail on Sunday" article it says: "The Japanese are big holders of foreign investments, particularly US government bonds. If they are forced to sell, it could lead to catastrophe on Wall Street and other stock markets around the world. Many now believe that if the US takes steps to bar cheap imports from Japan and the Far East, it will stop those countries from trading their way to recovery and could trigger a Thirties-style recession." Most of the US Treasury bonds are believed to be held by tbe Bank of Japan. Decisions to sell them will therefore be subject to political considerations. However, $US 1 trillion of US Treasury bonds are owned by the Japanese life insurance industry, which is almost bankrupt, according to the UK newspaper "The Observer". Reports have appeared suggesting that Japanese institutions are selling Australian and Canadian government bonds, in deference to the potential repercussions of selling US Treasury bonds. >>>