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Supplementary to question No. 1.

LegCo meeting.

16 July 1986

Mr. SOHMEN:

to

IS the Financial Secretary aware that there

appears

be no strict legal prohibition against banks

divulging information on their customers' accounts but this is

simply an implied term of the contract between the bank and its

client whose contractual provisions could, of course, be

amended to take away the reservations expressed by the

Financial Secretary ?

Financial Secretary:

is

me

SO

Sir, I am certainly now aware that there

an implied term in the contract because Mr. SOHMEN

SOHMEN has told

but whether, in fact, that implied term should be

altered by legislation is a very difficult question. As I have

said, we will have to take into account all the wider economic

considerations and, indeed, whether such legislation is

appropriate for Hong Kong today.

Mr Martin LEE:

Sir, would the Financial

Secretary kindly

elaborate on what he means by the last few words in his answer,

the wider economic considerations.

——

"

Financial Secretary: Yes, Sir, what I had in mind basically

was what effect any legislation that we might enact would have

on the attraction of Hong Kong as a financial centre.

moment, as Members know, Hong Kong is

people are allowed to move their

At the

a very open economy and

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