FRIDAY, JUNE 7, 1985
5
'ACTION ON BANK TAKEN WITH GREAT DIFFICULTY'
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THE COURSE OF ACTION TAKEN BY THE GOVERNMENT, THE EXECUTIVE COUNCIL AND THE LEGISLATIVE COUNCIL ON THE OVERSEAS TRUST BANK LIMITED WAS ONE THAT HAD BEEN REACHED WITH A VERY GREAT DEAL OF DIFFICULTY AFTER VERY CONSIDERABLE HEART-SEARCHING,+ THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID TODAY.
IN HIS SUMMING UP, GIVEN IMPROMPTU, ON THE DEBATE ON THE OVERSEAS TRUST BANK (ACQUISITION) BILL 1985, SIR JOHN SAID: +WHETHER WE ARE RIGHT OR NOT, I DO NOT KNOW. NO ONE IN THIS CHAMBER KNOWS. BUT I DO KNOW THAT FOR MY PART, I WOULD NOT HAVE ACCEPTED THE RISK FOR HONG KONG OF TAKING ANOTHER COURSE.+
SIR JOHN ALSO SAID: +AS THIS COUNCIL MOVES FORWARD WITH A GREATER DEGREE OF POLITICALISATION, IT'S AMONG THE LESS EXTRAORDINARY MEASURES TO HEAR SENIOR GOVERNMENT SERVANTS SPEAKING WHOLLY IMPROMPTU WITHOUT NOTES OR NOT MANY NOTES AND
FIRST CERTAINLY WITHOUT PREPARED SPEECHES. I SHALL DO MY BEST. OF ALL, I WOULD LIKE TO THANK MEMBERS FOR THEIR GENERAL UNDERSTANDING. I MUST SAY I APPROACHED THIS BILL WITH TOTAL DISTASTE. | ADVOCATE ITS ADOPTION PURELY BECAUSE ALL OTHER MEASURES SEEM WORSE. I CAN'T SEE ANYTHING ELSE THAT WOULDN'T SEEM WORSE.
+NEVERTHELESS WHAT IS NOT QUANTIFIABLE IS WHAT WOULD HAPPEN TO HK'S STATUS AS AN INTERNATIONAL FINANCIAL CENTRE AND ON THE PERCEIVED INTEGRITY OF THE LOCAL INTERBANK MARKET IF WE DO NOT TAKE SUCH ACTIONS. CONFIDENCE IN THE HK DOLLAR IS ALSO AT STAKE. AND I NEED NOT TELL YOU HOW HARDLY WON THAT CONFIDENCE IS. THE WORST SCENARIO POSSIBLE COULD INCLUDE THE BREAKDOWN OF THE INTERBANK MARKET WITH A VERY SERIOUS KNOCK-ON EFFECT ON LOCAL BANKS.
I AM EXTREMELY SORRY +1 AM GRATEFUL FOR DR FANG'S COMMENTS.
BUT I AM SURE THAT HE THAT WE HAVE TO ACT IN SUCH A HASTY MANNER. AND THE OTHER MEMBERS KNOW WHY. HE SEEKS ASSURANCES AND I WILL DO MY BEST TO GIVE THEM.
+MR CHEN HAS SPOKEN PERSUASIVELY OF THE SYSTEM IN HK BASED ON FREE ENTERPRISE, BASED ON PEOPLE LOOKING AFTER THEMSELVES, BASED ON THE FACT THAT WE DO NOT BAIL OUT LAME DUCKS. I DO NOT DISAGREE WITH HIM. I MUST HOWEVER COMMENT THAT TO SOME EXTENT THAT AND AS HAVE SAID IT IS AN UNQUANTIFIABLE EXTENT. BANKS ARE NOT LIKE OTHER BUSINESSES, MR CHEN AND I WOULD LIKE TO TREAT THEM AS THEY WERE, AS IF THEY WERE OTHER BUSINESS. NOTHING COULD HAVE GIVEN ME GREATER PLEASURE THAT TO SEE THIS WRETCHED BANK BE PUT INTO INSOLVENCY. BUT I AM PERSUADED THAT THE RISKS ON THE BEHALF OF HONG KONG AS A MAJOR WORLD FINANCIAL CENTRE ARE SIMPLY NOT WORTH TAKING. THEY ARE TRULY UNQUANTIFIABLE RISKS.
/+MISS DUNN