27 August 2008

Dear Mr Tse Wai Chun Paul

I refer to your letters dated 21 August 2008 and 25 August 2008. In your letter of 21 August 2008, you raised again the matter of so-called "abuses of TIC status and authority", to which I had responded more than once. I therefore would like to clarify the following two matters only.

Never appointed as Honorary Legal Adviser

In your letter of 21 August 2008, there was an enclosed letter signed by Mr Simon Hau, who "confirmed", in his capacity as a former Chairman and former Deputy Chairman of the TIC, that he had invited you to be an Honorary Legal Adviser of the TIC from 1995 to 2000.

In response to this "confirmation", I would like to state only one point: in the period during which you claimed to be an Honorary Legal Adviser of the TIC, the TIC Board had appointed, at its 90th meeting held in January 1995, only Mr Andy Lo of Andy Lo & Co and Mr Mohan Datwani of Koo and Partners to be the Honorary Legal Advisers of the TIC; and two appointment letters had been subsequently sent to them. If there were any appointment letter sent to you by the TIC, I would be most willing to examine its authenticity.

Invalid requisitions for convening EGM

In your letter of 25 August 2008, you stated that the "TIC even returned the signed requisitions of the 96 members for convening an EGM without proffering any reasonable explanations".

In response to this accusation, I would like to emphasise the following three points, which should suffice to prove that the requisitions you delivered to the TIC in person were invalid:

1. According to the TIC's M&A and the law, members holding 5% of the total voting rights of all members will suffice to requisition the Board to convene an EGM. However, since some of the requisitions you delivered to the TIC were not signed by the authorised person of the members registered with the TIC, and those requisitions signed by registered authorised persons constituted less than 5%, the above requirement for convening an EGM has never been met.

2. Either the originals or the certified true copies of requisitions are needed. However, all the requisitions you delivered to the TIC were photocopies.

3. The first page of all the requisitions was absent. And as such, it is impossible to know the real intentions of those members who signed the requisitions.

I would also like to remind you that the eight Association Members and the Ticketing Committee of the TIC have considered it unnecessary to convene an EGM to resolve the matter concerning Emirates Airline's commission reduction.

Yours sincerely
TRAVEL INDUSTRY COUNCIL OF HONG KONG

Ronnie Ho
Chairman