SATURDAY, NOVEMBER 24, 1984

MR BRAY WAS ASKED ABOUT FUNCTIONAL CONSTITUENCIES - IN PARTICULAR THAT FOR THE FINANCIAL SECTOR WHERE THE REPRESENTATIVE ORGANISATION HAS BEEN NAMED AS THE HONG KONG ASSOCIATION OF BANKS. OF THE 135 MEMBERS ONLY 32 ARE LOCAL BANKS.

WHY SHOULD FOREIGN BANKS BE IN THE POSITION OF HAVING A MAJORITY SAY IN THE ELECTION?

HE REPLIED THAT FUNCTIONAL CONSTITUENCIES WERE A DEVELOPMENT OF THE PRESENT SYSTEM OF APPOINTMENTS TO THE LEGISLATIVE COUNCIL. FOREIGN BANKS HAD PLAYED AN IMPORTANT ROLE IN THE SUCCESS OF HONG KONG AND MANY HAD BEEN IN THE TERRITORY FOR A VERY LONG TIME. THE IR CONTRIBUTION TO THE GDP WAS VERY SUBSTANTIAL AND BANKS WERE A VERY IMPORTANT SECTOR.

MR BRAY WAS ASKED WHY A MINISTERIAL SYSTEM WAS NOT PROPOSED TO ALLOW UNOFFICIALS TO TAKE OVER EFFECTIVE POWER. IN REPLY HE POINTED OUT THAT THE UNOFFICIALS ALREADY HAD JUST THIS POWER, CONTROLLING BOTH THE EXECUTIVE AND LEGISLATIVE COUNCILS. THE SYSTEM OPERATED AS ONE OF CORPORATE, RATHER THAN MINISTERIAL, RESPONSIBILITY. HE FORESAW THAT WITH DEVELOPMENTS IN THE FUTURE THE BASIS OF ARGUMENT MIGHT SHIFT FROM BEING BETWEEN OFFICIALS AND UNOFFICIALS TO BETWEEN THE UNOFFICIALS THEMSELVES.

IT WAS SAID THAT AS THE EXECUTIVE COUNCIL OPERATED IN SECRET, PEOPLE DID NOT KNOW WHAT ITS POWER WAS. MR BRAY REPLIED THAT ALTHOUGH ITS PROCEEDINGS WERE SECRET ITS POWER WAS KNOWN AND THAT SECRECY WAS PROBABLY THE ONLY WAY THAT CORPORATE CONTROL COULD BE EXERCISED WITH ARGUMENTS TAKING PLACE AND THEN AN AGREEMENT BEING SUPPORTED BY ALL MEMBERS.

ON REMUNERATION AND EXPENSE ALLOWANCES FOR LEGISLATIVE COUNCILLORS, MR BRAY SAID THAT LEVELS HAD NOT YET BEEN DECIDED. HE WAS ASKED WHETHER MEMBERS COULD RECEIVE DOUBLE PAYMENT IN THE FORM OF ALLOWANCES AND THE IR REMUNERATION FROM THE IR NORMAL JOBS AND HE REPLIED THAT HE THOUGHT THIS WOULD BE SO.

MR BRAY DOUBTED THAT PROBLEMS WOULD ARISE WITH REGARD TO CONFLICT OF INTERESTS - SAYING THAT THIS HAD NEVER HAPPENED IN THE PAST.

HE WAS ASKED WHETHER CIVIL SERVANTS WOULD FEEL UNHAPPY AT AN INCREASING ROLE BEING PLAYED BY UNOFFICIALS. MR BRAY SAID THIS WAS UNLIKELY IN VIEW OF THE IR ALREADY CLOSE INVOLVEMENT IN THE ADMINISTRATION FOR INSTANCE THE CHAIRMAN OF A COMMITTEE WAS OFTEN AN UNOFFICIAL AND THE SECRETARY WAS AN OFFICIAL BUT BOTH WORKED TOGETHER IN HARMONY.

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