-OCT-1992 23:55
HK GOVERNMENT HOUSE
-3-
852 521 1868 P.07
Others: On the economy, Benjamin Chan of the Bank of East Asia welcomed the proposal to set up a Monetary Authority but doubted the independence of the Authority as it would still be within the Government's framework. He maintained that consultative committees outside the authorty would still be needed to provide checks and balances. He said that the sections on inflation, the new airport and labour importation carried "nothing new". He envisaged that political rather than economic considerations would dictate the Government on whether the linked rate was to be scrapped.
Paul Cheng of GenCham supported the Governor's efforts to build a more accountable Government and maintain its executive-led system. He welcomed the establishment of a Business Council but was concerned whether the proposal to broaden the electorate of functional constituencies would be easy to adminster and implement. On labour, he supported importation of foreign workers but felt that care should be taken to ensure that local workers were not affected.
On Mr Patten's plan to resolve the housing problem for the sandwiched class, Sze Wing-ching from the property sector said that the proposal would affect the market's self-regulation and adjustment and would keep property prices high.
Kwai Tsing DB chairman Leung Kwong-cheung supported scrapping the DB appointments system, saying that it would pave the way for a faster pace of democracy for DBs. Sham Shui Po DB chairman Choi Wai-shek said however that abolishing the DB appointments system once and for all was too drastic a move that could affect the balance of power on DBs. ΜΕ Choi would like to see more money being allocated to DBs.
The Hang Seng Inden Ivse 35 points today. Market analysts believed tic market sentiments tomorrow would be influenced by China's reaction to the policy address.