7
FRIDAY, JUNE 7, 1985
+MR STEPHEN CHEONG COMMENTED SENSIBLY AND WISELY AGAIN ON THE POSSIBLE ADVERSE EFFECTS, PARTICULARLY IN OUR FINANCIAL AREAS. HONG KONG IS PART OF THE HONG KONG-NEW YORK-LONDON-ZURICH AXIS. ONE OF THE PROBLEMS WE HAD IN ADDRESSING THIS ISSUE IS TO SEEK TO BE CLEARER IN OUR OWN MIND WHAT OUR DUTY IS TO INTERNATIONAL BANKING AS A WHOLE, HONG KONG IS PART OF THE INTERNATIONAL BANKING COMMUNITY AND WE CANNOT SEEK TO GO OFF ON A COURSE OF SELF-INTEREST ON OUR OWN, WITHOUT CONSIDERING AT THE SAME TIME WHAT OUR OVERALL RESPONSIBILITIES ARE. ENTIRELY SHARE HIS VIEW AGAIN OF THE NEED TO DEVELOP BETTER SUPERVISION. I ENTIRELY AGREE WITH HIS MESSAGE WHICH HE AND OTHERS HAVE MADE QUITE CLEAR TO-NIGHT THAT WE SHOULD MAKE IT PERFECTLY PLAIN TO OTHER BANKS IN HONG KONG WHO MAY RUN INTO TROUBLE THAT IF THEY SEEK TO BE BAILED OUT WITH GOVERNMENT -- THAT IS THE PEOPLE OF HONG KONG'S FUNDS THEY HAD BETTER HAVE ANOTHER THOUGHT.
+1 WOULD LIKE TO THINK THIS IS THE LAST CASE OF THIS SORT THAT WILL ARISE. I SHARE HIS VIEWS ON THE NEED TO DETECT SUCH PROBLEMS EARLIER. OBVIOUSLY THIS IS A COURSE OF EXCELLENCE. WE WILL ACCEPT THE PROBLEMS FACED BY THE BANKING COMMISSIONER WHEN HE WAS ONLY INFORMED BY THE CHAIRMAN OF THIS BANK THAT IT WAS INSOLVENT AT 4.30 PM LAST NIGHT.
+1 TAKE MR CHEONG'S POINT ABOUT SELF REGULATIONS, I TAKE HIS POINT ABOUT SQUABBLES IN THE BANKING INDUSTRY. HE WILL AGREE THAT WE MUST AS I HAVE PROMISED SEVERAL TIMES GO FORWARD TOWARDS NEW LEGISLATION AS A PROCESS OF CONSULTATION.
+WE MUST CONSULT, WE HAVE CONSULTED. WE HAD A VERY IMPORTANT MEETING OF THE BANKING ADVISORY COMMITTEE ONLY ON WEDNESDAY THIS WEEK, BUT I SAY TO YOU AND I SAY TO THE BANKS IN HONG KONG THAT CONSULTATION HAS TO COME TO AN END SOME TIME.
+WE HAVE CONSULTED AND WE ARE SHORTLY GOING TO HAVE TO MAKE OUR MINDS UP AND THEN INTRODUCE A BILL TO EXECUTIVE COUNCIL AND HOPE THAT THEY WILL AGREE THAT WE MAY INTRODUCE IT INTO THIS COUNCIL.
+HAVE NO DOUBT THAT I AND THE BANKING COMMISSIONER ARE SET ON GETTING TO GRIPS WITH THIS QUESTION OF BETTER BANKING SUPERVISION AS QUICKLY AS POSSIBLE.
+BUT THERE ARE 141 BANKS, 33 LICENSED DEPOSIT-TAKING COMPANIES, ABOUT 330 REGISTERED DEPOSIT-TAKING COMPANIES AND 114 BANK REPRESENTATIVE OFFICES. I THINK IT IS A FAIR POINT TO SAY THAT THE SQUABBLING THAT GOES ON IS NOT ON THE WHOLE LIKELY TO END UP IN SWEET REASON.
+THIS IS WHY I SAY AFTER THE PROCESS OF CONSULTATION HAS STOPPED THE GOVERNMENT IS GOING TO HAVE TO TAKE ACTION, AND
I AM VERY PLEASED TO NOTE THE FEELINGS IN THIS COUNCIL AND TO SENSE THAT WON'T HAVE ANY DIFFICULTY IN SECURING YOUR AGREEMENT.
/+MRS CHOW