FRIDA
JUNE 7, 1985
SHE SAID SHE HOPED JUSTICE WOULD BE BROUGHT TO BEAR ON THE CRIMINALS CONCERNED AND SHE PARTICULARLY HOPED THAT THE BANK'S SHAREHOLDERS WOULD NOT BE GIVEN ANY COMPENSATION FOR THE GOVERNMENT'S TAKEOVER OF THE BANK.
ACKNOWLEDING THAT THE COURSE OF ACTION WHICH THE BILL PROPOSED WAS NECESSARY, MISS DUNN SAID THE GOVERNMENT MUST NOT BE SEEN TO HAVE ANY IMPLÍCIT COMMITMENT TO BAIL OUT ANY BANK AT THE EXPENSE OF PUBLIC MONEY.
+THE FINANCIAL COMMUNITY WILL BE WELL ADVISED TO EXERCISE PRUDENCE AND DISCRETION IN THEIR BUSINESS DEALINGS AND I WOULD LIKE AN ASSURANCE THAT THE GOVERNMENT WILL MAKE IT CLEAR THAT IT WILL NOT LIGHTLY COME TO THE RESCUE OF OTHER BANKS WHICH GET INTO TROUBLE, SHE SAID.
THE HON ALLEN LEE SAID IF THERE WERE ANY DOUBTS IN THE INTERNATIONAL COMMUNITY AS TO OUR CREDIBILITY IN FINANCIAL CIRCLES WE MUST PUT THEM TO BED. WE MUST ALSO STRENGTHEN OUR BANKING SUPERVISION AND ESTABLISH A SYSTEM THAT THE GENERAL PUBLIC CONFIDENTLY FELT PROTECTED IT.
+ IT IS THE INTEREST OF THE GENERAL PUBLIC THAT I AM THINK ING ABOUT IN SUPPORTING THIS BILL, HE SAID.
STATINGTHAT HE CAME VERY CLOSE TO OPPOSING THE BILL, THE HON STEPHEN CHEONG SAID THE BALANCE WAS ONLY TIPPED BY THE POSSIBLE ADVERSE EFFECTS ON HONG KONG'S INTERNATIONAL IMAGE AS A FINANCIAL CENTRE.
+GIVEN THE INTERTWINED TRANSCONTINENTAL RELATIONSHIP THAT EXISTS NOWADAYS BETWEEN HONG KONG, NEW YORK, LONDON AND ZURICH, + HE SAID, +ANY SIGNS OF POSSIBLE COLLAPSE AND HONG KONG'S IMAGE WILL BE IRREVOCABLY DAMAGED AND THIS WILL DEFINITELY NOT BE GOOD FOR HONG KONG LONG-TERM INTERESTS, +
MR CHEONG SPOKE OF SQUABBLES IN THE BANKING INDUSTRY AND SAID HE HOPED THESE WOULD NOW CEASE. +WE CERTAINLY HOPE THAT THE INDUSTRY WILL NOW REGULATE ITSELF A LOT BETTER THAN HAS BEEN SHOWN IN THE PAST, HE TOLD THE COUNCIL.
THE HON MRS SELINA CHOW SAID SHE COULD NOT AGREE WITH THE FINANCIAL SECRETARY THAT THERE WAS NO CAUSE FOR FURTHER ANXIETY. +FOR IT WAS ONLY 20 MONTHS AGO WHEN WE WERE ASKED IN THIS VERY CHAMBER TO PASS THE HANG LUNG BANK (ACQUISITION) BILL AND HERE WE ARE FACED WITH A SIMILAR DECISION ALTHOUGH THE CAUSES MAY BE DIFFERENT.+
WHAT SEEMED TO HER TO BE THE MAIN CAUSE OF ANXIETY THIS TIME WAS THAT THE GOVERNMENT STATED THAT IT COULD NOT QUANTIFY WHAT THE COSTS WOULD BE TO THE EXCHANGE FUND FROM WHICH EXPENSES WOULD BE MET.
+IN OTHER