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044146
MDLIAN 6936
ORGANISATION BEFORE THE ANNOUNCEMENT AND THAT WAS WHY CHINA HAD RESPONDED SO MILDLY TO THE NEWS. HOWEVER, MING PAO, QUOTING SOURCES CLOSE TO THE CHINESE SIDE, SAID THAT ALTHOUGH HK BANK CHAIRMAN WILLIAM PURVES HAD DURING HIS VISIT HINTED TO CHINESE PREMIER LI PENG THAT THE BANK WOULD BE RESTRUCTURED, HE HAD PROBABLY NOT MADE HIMSELF CLEAR THAT THE MOVE WAS ACTUALLY A CHANGE OF DOMICILE, THEREBY LEADING TO A MISUNDERSTANDING ON THE PART OF LI PENG THAT IT WOULD BE BENEFICIAL TO HK AND WAS A 'WISE DECISION'. SING TAO JIH PAO CARRIED A DISPATCH BY THE NCNA HK BRANCH WHICH QUOTED A HK ECONOMIST AS SAYING THAT THE MOVE BY THE BANK MIGHT MAKE IT NECESSARY FOR THE HK GOVERNMENT TO INVITE THE BANK OF CHINA TO BECOME A NOTE-ISSUING BANK IN HK.
4. THE HK GENERAL CHAMBER OF COMMERCE SAID THAT THE MOVE SHOULD NOT BE INTERPRETED AS A LOWERING OF CONFIDENCE IN HK'S FUTURE AND THAT THE BANK, BY MAINTAINING INTERNATIONAL TRUST, WOULD BE ABLE TO REINFORCE STABILITY AND PROSPERITY IN HK. THE DEPUTY MANAGING DIRECTOR OF THE HK HEADQUARTERS OF THE BANK OF TOKYO, SHAO YOU- BAO, SAID THAT ALTHOUGH THE BANK'S MOVE WAS UNLIKELY TO AFFECT THE STABILITY AND NORMAL OPERATION OF THE FINANCIAL MARKETS IN HK, PEOPLE WOULD BE AFFECTED PSYCHOLOGICALLY. RESEARCH DIRECTOR AT CITICORP SCRIMGEOUR VICKERS HK LIMITED SIMON CHIN SAID THAT INTERNATIONAL INVESTORS WOULD BE UNEASY AT SEEING THAT 'EVEN THE HK BANK WAS SHIFTING NOW'. THE ASSOCIATION FOR DEMOCRACY AND PEOPLE'S LIVELIHOOD SAID THAT THE MOVE WAS IRRESPONSIBLE TO HK PEOPLE AND THAT IT COULD IN NO CASE BE CONSIDERED AS A COMMERCIAL DECISION BECAUSE THE BANK WAS A MAJOR NOTE-ISSUING BANK OF HK. A STREET POLL CONDUCTED BY THE HK STANDARD FOUND THAT HK BANK WOULD NOT LOSE CUSTOMERS BY MOVING ITS BASE TO THE UK BUT THAT IT MIGHT HAVE ONLY A SHORT-TERM EFFECTS ON HK'S ECONOMY. MOST SPEAKERS AT RTHK'S CITY FORUM SAID THAT THE HK GOVERNMENT SHOULD WITHDRAW THE VARIOUS POLITICAL AND FINANCIAL PRIVILEGES FOR HK BANK, INCLUDING CLEARING HOUSE ARRANGEMENTS, NOTE-ISSUING STATUS AND MEMBERSHIP OF THE EXCHANGE FUND ADVISORY BOARD, AFTER ITS RE-ORGANISATION.
JOINT DECLARATION
5. WEN WEI PO (20.12) CARRIED INTERVIEWS WITH COMMUNITY LEADERS ON THE SIXTH ANNIVERSARY OF THE SIGNING OF THE JD. MOST OF THEM WERE AFFIRMATIVE OF THE STABILISING EFFECT OF THE JOINT PACT BUT BELIEVED THAT CONFLICTS WERE INEVITABLE DURING THE CHANGE-OVER OF ADMINISTRATIVE AUTHORITY.
GENERAL REMARKS
6. A REUTERS DISPATCH QUOTED AN UNNAMED SENIOR BRITISH OFFICIAL
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