ON
FRIDAY, JUNE 7, 1985
TO HER
WE
IT WAS
+MISS DUNN HAS SPOKEN MOST KINDLY, I AM GRATEFUL COMMENTS ON THE SPEED WHICH WE HAVE APPROACHED THIS BILL. THE SPEED WHICH I MUST SAY WHICH I FOUND MOST DISTASTEFUL. WE HAVEN'T REALLY HAD TIME TO THINK THINGS UP PROPERLY. CERTAINLY HAVEN'T HAD TIME TO THINK WHAT WE'RE GOING TO DO WITH THE BANK WHEN WE OWN IT. I THINK PEOPLE KNOW WHAT HAS BEEN HAPPENING IN HONG KONG TODAY, WHAT PEOPLE HAVE BEEN SAYING AND THE WORRIES OF LITTLE MEN. 1 ENTIRELY SHARE HER VIEWS ON THE NEED TO MAKE SURE THAT JUSTICE TAKES DUE EFFECT ON ALL CRIMINALS. I CERTAINLY SHALL REMIND MY COLLEAGUE THE ATTORNEY GENERAL OF THE VIRTUES OF A CRIMINAL ACTION IN THE COURT. IT DID SEEM APPROPRIATE THAT WE SHOULD MAKE A TOKEN PROVISION FOR SHAREHOLDER CLAMING COMPENSATION. IT IS NOT OUR FASHION IN HONG KONG NOW AND IT WILL BE NOT IN THE FUTURE, TO SEQUESTER PEOPLE'S PROPERTIES OR PROPERTY OR MONEY WITHOUT ALLOWING THEM A CHANCE TO CLAIM.
+NOW I SAY YET AGAIN THAT, IF INDEED THERE IS ANY CLAIM THAT IS FAIRLY PUT, I FOR ONE, WILL BE EXTREMELY SURPRISED. TO ME, NOT THE LEAST SATISFACTORY OUTCOME OF THIS WHOLE BUSINESS AND PERHAPS SOME WOULD SAY ABOUT THE ONLY SATISFACTORY OUTCOME IS THAT SHAREHOLDERS THEMSELVES ARE NOT BEING BAILED OUT. AND THEY WOULD INDEED HAVE LOST AT LEAST $1.6 BILLION. WHAT WE ARE PROTECTING IS THE GOOD NAME OF HONG KONG AND THE TRUST OF DEPOSITORS IN OUR BANK ING SYSTEM HERE. THERE IS OF COURSE ABSOLUTELY NO COMMITMENT TO FURTHER BAILS OUT.
+MISS DUNN IS QUITE RIGHT TO WARN OTHER BANKS IN HONG KONG THAT THIS BILL OFFERS NO COMFORT FOR THEM FOR THE FUTURE. SELF- RELIANCE IS A PRINCIPLE OF HONG KONG'S LIFE. BANKS WHO LEND TO BANKERS IN PARTICULAR MUST BE PRUDENT AND CAUTIOUS, ADDRESSING THE RISKS AS THEY ARE SEEKING AND EARNING THEIR REWARDS. THE COMMISSIONER OF BANKING WILL NOT HESITATE TO EXAMINE HIS POWERS TO CONTROL BANKS WHICH CANNOT MANAGE THEIR AFFAIRS PRUDENTLY AND IN ACCORDANCE WITH THE REQUIREMENTS OF THE LAW.
+1 AM NOT SURPRISED AT MR LEE'S COMMENTS WHICH I THOUGHT IN ALL THE CIRCUMSTANCES, WERE EXTREMELY CHARITABLE. HONG KONG'S REPUTATION AS A FINANCIAL CENTRE IS OF MAXIMUM IMPORTANCE TO US. I AM PARTICULARLY SENSITIVE TO HIS COMMENTS, WHICH AGAIN I THOUGHT WERE ENTIRELY DESERVED ON THE NEED TO STRENGTHEN BANKING SUPERVISION. I SHALL BE LEAVING THIS CHAMBER TO FACE THE PRESS AND I HAVE NO DOUBT THIS IS AN AREA WHICH WILL BE VIGOROUSLY PURSUED. BUT I MUST AGAIN REPEAT, THAT IT IS ONE THING TO SUPERVISE THE ACTIONS OF BANK MANAGERS ACTING IMPRUDENTLY OR INCAUTIOUSLY. IT IS QUITE ANOTHER MATTER TO SEEK TO CATCH WHAT OCCUR TO US TO HAVE BEEN MAJOR ACTS OF CRIMINALITY. OF COURSE THIS IS AN AREA IN WHICH THE BANKING COMMISSIONER WILL SEEK TO STRENGTHEN HIS STAFF. BUT I THINK ONE MUST ACCEPT THAT IT WOULD BE MOST UNWISE, MOST FOOLISH FOR ME TO SAY IT, THAT WE WILL CATCH ALL CRIMINALS IN THE FUTURE. WE SHALL CERTAINLY DO OUR BEST.
/+MR STEPHEN