THURSDAY, OCTOBER 25, 1984
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+IN THIS CONNECTION, HONG KONG MUST AIM AT DEVELOPING ITSELF INTO A REGIONAL FINANCIAL BASE,+ HE SAID.
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IN PARTICULAR HE SAID, IT SHOULD SERVE TO SUPPORT CHINA WHICH MIGHT LACK THE INSTITUTIONAL ARRANGEMENTS TO ACCOMMODATE SUCH FULL-SCALE CAPITALIST ACTIVITIES AS FINANCE.
+GIVEN THIS PROSPECT, IT IS IMPERATIVE FOR US TO ENSURE THAT OUR FINANCE SECTOR IS A WELL-REGULATED ONE WHICH CAN SECURE STRONG VOTE OF INTERNATIONAL CONFIDENCE.+
MR CHAM CALLED FOR A MORE SUPPORTIVE ROLE BY THE GOVERNMENT TO IMPROVE THE LUBRICATION OF HONG KONG'S FINANCIAL MARKET SC THAT ITS EFFICIENCY AND FUNCTIONING COULD BE MADE BETTER THAN IT WAS NOW.
HE ALSO SAID THE GOVERNMENT SHOULD EXAMINE THE FEASIBILITY OF COMBINING THE SUPERVISORY FUNCTIONS OF THE THREE OFFICES OF THE COMMISSIONER FOR COMMODITIES TRADING, THE COMMISSIONER FOR BANKING AND THE COMMISSIONER FOR SECURITIES INTO ONE ADVISORY BODY.
+SUCH AN EXERCISE MIGHT BE ABLE TO DEMONSTRATE MORE CONVINCINGLY THAT THE FINANCIAL SECTOR COULD PROBABLY OPERATE MORE SMOOTHLY UNDER AN INTEGRATED AUTHORITY OF SUPERVISION OVER ALL THESE THREE ASPECTS, HE SAID.
HE SAID HIS EXPECTATION WAS FOUNDED ON THE PRESENT TREND TOWARDS THE INTEGRATION OF FINANCIAL BUSINESS, WITH BANKS TRADING IN SECURITIES AND FINANCIAL FUTURES.
ON THE EXPECTED BUDGET DEFICIT OF $2.1 BILLION, MR CHAM SAID THAT GIVEN THE SMALL SIZE OF THE PUBLIC SECTOR BY INTERNATIONAL NORMS, THIS RED FIGURE COULD NOT B CONSIDERED EXCESSIVE IF IT DID NOT BECOME HABITUAL.
HE SAID THERE MIGHT BE MOUNTING PRESSURE TO BALANCE THE BUDE: ́. BUT DUE CARE HAD TO BE EXERCISED IN CHOOSING THE MEANS.
+AS A MATTER OF PRINCIPLE, WE MUST ENSURE THAT HONG KONG REMAINS ATTRACTIVE FOR INVESTMENT AND COMPETITIVE IN PRODUCTION.
+ABOVE ALL, WE MUST BEAR IN MIND THAT SINCE WE ARE NOW IN A CRITICAL PERIOD OF CONFIDENCE REBUILDING, ANY MOVES THAT ERODE OUR ATTRACTIVENESS AND COMPETITIVENESS MAY HAVE REPERCUSSION. ON THE LONG-TERM DEVELOPMENT OF OUR ECONOMY, HE SAID.
WITH THE EXPORT-LED RECOVERY NOW UNDER WAY, MR CHAM SAID IT MIGHT BE PRUDENT TO EXERT AN AUSTERE CONTROL OVER PENDITURE AND CRADLE PATIENTLY THE RECOVERY PROCESS SO THAT IT MIGHT EXTEND EVENLY TO OTHER SECTORS.
+ IF THE PRESENT ECONOMIC RECOVERY CONTINUES, HE SAID, +IT IS POSSIBLE THAT BEFORE LONG WE SHALL BE ABLE TO WITNESS A NATURAL INCREASE IN GOVERNMENT REVENUE AS A LAGGED BUT BUILT-IN EFFECT OF ECONOMIC ADJUSTMENT,
HE SAID.
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