WEDNESDAY, DECEMBER 7, 1983
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+CONCERN HAS ALSO BEEN EXPRESSED REGARDING THE ADEQUACY OF THE TRANSITIONAL ARRANGEMENT PRESCRIBED IN CLAUSES 9(B) AND 6(2A) RESPECTIVELY, BUT WE ARE SATISFIED THE COMMISSIONER WILL INTERPRET THESE IN A SENSIBLE MANNER AND THE THE PROVISIONS AS THEY STAND WILL IN PRACTICE MEET THE CIRCUMSTANCES, HE ADDED.
MR BROWN THEN RAISED TWO MATTERS WHICH WERE NOT SUBJECT TO AMENDMENTS BUT ON WHICH THE ADMINISTRATION HAD PROMISED CERTAIN ASSURANCES.
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ON THE PROPOSED POWERS FOR THE COMMISSIONER WHERE MONEYS HAVE BEEN PLACED WITH A FOREIGN BANK, HE SAID, I AM PERSONALLY HAPPY WITH THE PROPOSAL BUT IT WOULD BE HELPFUL IF THE ADMINISTRATION COULD RECONFIRM THAT THE COMMISSIONER WOULD NOT NORMALLY USE SUCH POWERS IN RESPECT OF BANKS WHICH ARE ADEQUATELY SUPERVISED IN THE IR OWN COUNTRY.+
THE SECOND POINT CONCERNS THE DEFINITION OF A NON-LISTED COMPANY+.
MR BROWN SAID THAT AT PRESENT IT WAS NOT NECESSARY FOR THE REFERENCE TO THE STOCK EXCHANGES IN HONG KONG TO BE EXTENDED TO INCLUDE STOCK EXCHANGES RECOGNISED IN OTHER PARTS OF THE WORLD DUE TO THE RESTRICTIVE DEFINITION OF +COMPANY IN THE PRINCIPAL ORDINANCES.
+ IN THE EVENT, HOWEVER, THAT THIS RESTRICTIVE DEFINITION WHICH FOR CLARIFICATION WOULD MENTION INCLUDES BROADLY SPEAKING ONLY COMPANIES INCORPORATED IN HONG KONG OR INCORPORATED ELSEWHERE BUT WHICH HAVE COMPLIED WITH THE PROVISIONS OF THE HONG KONG COMPANIES ORDINANCES - IS CHANGED, THEN IT IS MY UNDERSTANDING THE ADMINISTRATION WILL RE-EXAMINE THE NEED TO EXTEND THE REFERENCE TO STOCK EXCHANGES TO INCLUDE SPECIFIED OTHER EXCHANGES OVERSEAS.
+THIS MAY SOUND PEDANTIC BUT A NUMBER OF COMPANIES WHO USE HONG KONG AS A FINANCIAL CENTRE FOR THEIR REGIONAL ACTIVITIES WOULD FACE PRACTICAL PROBLEM IN THE EVENT LIMITATIONS WERE PUT ON THEIR TRANSACTIONS WITH RELATED PUBLIC COMPANIES IN OTHER PARTS OF THE WORLD, MR BROWN SAID.
HE ALSO REFERRED TO THE AMENDMENTS TO BE MOVED BY THE ADMINISTRATION IN REGARD TO HIRE PURCHASE AND CONDITIONAL SALES AGREEMENTS, LENDING TO SUCH PUBLIC STATUTORY BODIES AS THE FINANCIAL SECRETARY MAY DESIGNATE AND LETTERS OF COMFORT PROVIDED TO THE COMMISSIONER.
HE SAID THAT UNOFFICIAL MEMBERS HAD ALSO CONSIDERED THESE ADDITIONAL AMENDMENTS, PARTICULARLY THOSE DEALING WITH LETTERS OF COMFORT FOR THESE HAD BEEN THE SUBJECT OF REPRESENTATIONS FROM SOME AFFECTED DEPOSIT-TAK ING COMPANIES.
MR BROWN ADDED THAT THE LEGCO MONETARY POLICY GROUP HAD CONSIDERED THE AMENDMENTS RELATING TO LETTERS OF COMFORT AND AGREED WITH THE ADMINISTRATION THAT AS BANKS WERE GENERALLY SUBJECTED BY THE IR SUPERVISORY AUTHORITIES TO THE SPECIAL SUPERVISION RELEVANT TO BANKING, IT WAS APPROPRIATE FOR THEM TO BE SUITABLE ISSUERS OF LETTERS OF COMFORT.
/+THESE AMENDMENTS,