FOR PRU USE ONLY

OP Date21/7/88

77

нко

PARLIAMENTARY QUESTION

For WRITTEN ANSWER on

25/7/88

Head of

Please submit :-

a draft Answer & background to Parliamentar: Unit

SERIAL NO;3125

TEXT OF QUESTION :-

MR TOM COX (TOOTING)

PARTY

before

NOON 22/7/88

La

To ask the Secretary of State/HMG; what reports have now been made to his Department over the events surrounding the Hong Kong Stock Exchange Crash in October 1987; and if he will make a statement on any action to be taken by the Hong Kong Government.

MKC 100/1

for answer by

MRS. CHALKER

RECE

-

- 1 AUG 1988

ISTRY

to P/S

LORD GLENARTHUR

(Minister)

for approval by

NOON

PQs

REPLY (s)

(Minister)

ANSWER:

IN

Taken

N

The Hong Kong Government have been in close and regular touch with the Government about developments since the events of October 1987. We welcome the recommendations for reform made by the Securities Review Committee, appointed by the Hong Kong Government, in their report published on 2 June. The Hong Kong Government together with the industry itself are acting as quickly as possible to implement the recommendations. An independent statutory regulatory body, the Securities and Futures Commission, is to be established as soon as the necessary legislation can be introduced. The Hong Kong Stock Exchange has just adapted important constitutional reforms which will make its governing body more broadly based and representative. The Government are confident that this prompt and decisive response will help to maintain and enhance Hong Kong's reputation as an international financial centre.

copy to

Private Secretary

PS/ MRS. CHALKER

(Minister)

Parliamentary Clerk

authorised

ARIAN

(Head of Dept.)

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