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Tuesday, July 3, 1973

COMMODITY EXCHANGE EXPERT IN HONG KONG

An expert from the Bank of England has arrived in Hong Kong to advise

the government on the problem of establishing one or more commodity exchanges.

He is Mr. John Wilson who is the bank's expert in commodity trading.

In a statement to the Legislative Council on June 20, the Financial

Secretary said commodity markets had speculative and volatile characteristics,

and adequate regulations were necessary for the proper running of such exchanges.

Mr. Haddon-Cave said the government had decided to ban, for the

time being, the establishment of commodity exchanges dealing with specified

commodities

initially 20 in all.

However, he pointed out that it was not the intention to frustrate

the development of a properly regulated exchange, or possibly more than one

exchange, at a later stage.

The intention was to ensure that if and when such an exchange was

established it would operate in a well regulated and orderly manner and in

accordance with internationally accepted standards.

Mr. Wilson will be in Hong Kong for about three weeks.

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