10.
influence and the Governor would be most unlikely to introduce
legislation against the advice of its members. The Executive Council
comprises five ex-officio members, two official and eight unofficial
members. The latter, who are in the majority, have or represent
vested interests and, in practice, have considerable blocking power.
As an example, it is understood that the "unofficials" have decided,
following the establishment of Barclays' branch office, that no
further foreign banks will be licensed. And so be it: National
Westminster have been obliged to accept the status of a finance
Furthermore, the Legislative Council, which has the power
to pass (subject to the Governor's assent before becoming law) or
reject Bills, comprises the Governor as President (with both an
10 ordinary and a casting vote), four ex-officio, eight official and
15 unofficial members. Again the "unofficials" are in a majority.
The conclusion, therefore, is that an appreciation in depth
of the situation should be made on the spot with the objects of
company.
establishing:
(1) what is required;
(2) what is possible.
It should be added that the Financial Secretary is believed to be
considering the introduction later this year of legislation to bring
the finance houses within the jurisdiction of the Banking Ordinance.
Whilst this would not go far enough the fact that some sort of action
is contemplated provides a good opportunity to undertake a fundamental
review of the overall banking situation.
July 1973