14

major

tasks

will

be

report on

Commission's

consideration of the Law Reform

insurance which I hope will be

published in the coming year.

42.

The review of the Hong Kong Commodity Exchange has

also been completed. As a result, the Exchange is to be reorganised and will become the Hong Kong Futures Exchange. Enabling legislation to permit the operation of a new market in stock index futures and other financial instruments will shortly be introduced into this Council and a further bill, aimed at improving the regulatory framework of the Commodities Trading Ordinance, is being prepared.

43.

for

A further step in the development of our financial sector will be the unification of our four stock exchanges, planned

the end of next year.

As part of this

development, legislation will be introduced this session regarding membership criteria for the Unified Exchange. Listing and compensation fund rules are also being prepared.

44.

(d) Trade and Industry

(i) Trade

of

While recovery in our major markets has brought an

in encouraging growth

our exports, there are

clouds

concern on the horizon. Protectionist pressures continue. We have been particularly concerned with measures taken in the United States, our largest market. A presidential

announcement in December 1983 led to the re-establishment of restraint limits on a number of items, which were supposed to have been liberalised under the 1982-1987 US/Hong Kong Textiles Agreement. More recently, new customs regulations have been introduced which, apart from being disruptive to trade, are inconsistent with the basic principles on which our bilateral agreement was concluded. Legislative proposals

/for

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