29
WEDNESDAY, JUNE 26, 1985
+ONE MAY ASK, WHAT IS TO STOP SHOPKEEPERS AT SOME POINT IN TIME IN FUTURE FROM DEMANDING FROM OUR CITIZENS FOREIGN CURRENCIES FOR WHATEVER SERVICES ARE RENDERED?
+HOW WOULD MEMBERS OF THE PUBLIC DEAL WITH SUPER-MARKETS THAT ONLY ACCEPT U.S. DOLLARS FOR DAILY GROCERIES OR THE SNACK SHOP ROUND THE CORNER DEMANDING STERLING FOR THE OCCASIONAL BOWL OF NOODLES?
+1 AM TOLD THAT UNDER THOSE CIRCUMSTANCES THE OPTIONS OPEN TO THE PUBLIC WOULD BE EITHER TO SWITCH TO ANOTHER SUPERMARKET OR ANOTHER SNACK SHOP OR TO GO TO THE BANK AND EXCHANGE HK DOLLARS FOR U.S. DOLLARS OR STERLING BEFORE SUCH NEEDS CAN BE MET.
+UNFORTUNATELY, IF AND WHEN THERE IS ANOTHER CONFIDENCE CRISIS ON OUR CURRENCY, BOTH OPTIONS WOULD BE NON-OPTIONS, HE SAID.
MR CHEONG SAID IT MIGHT BE ARGUED THAT IF A SERIOUS EROSION OF CONFIDENCE IN THE VALUE OF THE HONG KONG DOLLAR OCCURRED RETENTION OF THIS ORDINANCE ALONE COULD NOT PREVENT WHOLESALE PERSISTENT PANIC ACTIONS TAKEN BY OUR PEOPLE THAT WOULD PRECIPITATE A POSSIBLE COLLAPSE OF OUR SYSTEMS.
THIS WAS TRUE, BUT IT WAS EQUALLY TRUE TO SAY THAT CONFIDENCE WAS A DELICATE AND SOMETIMES IRRATIONAL PSYCHOLOGICAL PHENOMENA.
VERY OFTEN, UNDESIRABLE EFFECTS ON CONFIDENCE COULD BE TRIGGERED OFF BY RUMOURS; AND IN A LOT OF CASES, IN ORDER TO COUNTER THE EVILS OF RUMOUR, A MECHANISM WAS NEEDED TO PROVIDE SOME BREATHING SPACE TO DEFUSE A POTENTIALLY DISASTROUS SITUATION.
THE USE OF THE ORDINANCE BY THE ADMINISTRATION IN 1983 SUCCESSFULLY SERVED TO ILLUSTRATE THIS POINT VIVIDLY, HE SAID.
+THE ORDINANCE, WITHOUT ANY TEETH THEN, WAS PROVEN TO BE A USEFUL MECHANISM TO PROVIDE THE MUCH-NEEDED BREATHING SPACE.
+SO FAR NO ARGUMENT FORWARDED BY THE ADMINISTRATION IS CONVINCING ENOUGH TO JUSTIFY THAT THIS ORDINANCE NEEDS TO BE THROWN OUT ALTOGETHER.
+I SUBMIT THAT TO UPDATE THE ORDINANCE IS PERHAPS THE MORE ADVISABLE ALTERNATIVE,+ MR CHEONG SAID.
/30