17
WEDNE AY, OCTOBER 26, 1983
HE POINTED OUT THAT IN THE AREA OF RECREATION AND CULTURE THERE WAS STILL SOME DUPLICATION OF EFFORTS AND PROVISION SO THAT SOME CO-ORDINATION AND STREAMLINING WOULD BE BENEFICIAL TO THE URBAN COUNCIL, THE DISTRICT BOARDS AND THE GOVERNMENT DEPARTMENTS.
ON THE FUTURE OF HONG KONG, MR HU SAID, WE HAVE BEEN RE-ASSURED OVER AND OVER AGAIN BY BOTH THE UNITED KINGDOM AND CHINA THAT THEY ARE DETERMINED TO MAINTAIN THE STABILITY AND PROSPERITY OF HONG KONG.
+TO ACHIEVE THIS AIM HONG KONG MUST DO ITS OWN PART BY GETTING ON WITH THE JOB IN ORDER TO ENSURE SUCCESS IN A HIGHLY COMPETITIVE WORLD MARKET AND TO ASSIST CHINA IN HER MODERNISATION PROGRAMME.+
C
PROBLEMS OF SMALL CREDITORS RAISED
***
THE HON WONG PO-YAN URGED THE GOVERNMENT TO LOOK INTO CREDIT FACILITIES EXISTING BETWEEN TRADERS THEMSELVES AND THE LEGISLATIVE FRAMEWORK REGULATING THEM.
SPEAKING AT THE LEGISLATIVE COUNCIL TODAY, MR WONG WELCOMED THE GOVERNMENT'S INTENTION TO IMPROVE THE LEGAL AND INSTITUTIONAL FRAMEWORK OF HONG KONG BUT SAID THAT THESE EFFORTS WERE DIRECTLY EFFECTIVE ON CERTAIN SECTORS OF OUR ECONOMIC ACTIVITIES ONLY.
+CREDIT FACILITIES AMONG MEDIUM AND SMALL TRADERS AND MANUFACTURING UNDERTAKINGS FORM AN INTERGRAL PART OF OUR DAILY ECONOMIC ACTIVITIES AND ARE SUPPLEMENTARY TO THE OPERATIONS OF THE FINANCIAL INSTITUTIONS.
+THEY INCLUDE CREDIT IN VARIOUS FORMS OF PAYMENT TERMS IN COMMERCIAL TRANSACTION, AND ARE ESTABLISHED PRACTICES BETWEEN IMPORTERS, MANUFACTURERS AND EXPORTERS, DISTRIBUTORS AND RETAILERS, AND VENDORS OF RAW MATERIALS AND MANUFACTURERS.
+ IT SHOULD BE NOTED THAT THESE ESTABLISHMENT PAYMENT TERMS OR CREDIT FACILITIES ARE USUALLY NOT SECURED AND ARE WITHOUT COVERAGE OF COLLATERAL SECURITY AS DISTINCT FROM THE PRACTICE OF FINANCIAL INSTITUTIONS.+
THESE CREDITORS WERE THEREFORE EXTREMELY VULNERABLE TO
MALPRACTICE AND DEFAULT, HE SAID.
HE POINTED OUT THAT THE TOTAL NUMBER OF 115 BANKRUPTCY CASES AND 239 CASES OF COMPULSORY LIQUIDATION IN 1982-83 WERE THE HIGHEST RECORDED IN THE PAST TEN YEARS AND BELIEVED THAT THERE WERE MANY MORE UNREVEALED CASES THAT HAD NOT BEEN BROUGHT TO THE HANDS OF THE OFFICIAL RECEIVER.
/+IN THESE