WEDNESDAY, NOVEMBER 4, 1987
17
RESCUE PLAN FOR EXCHANGE CRITICISED
THE RESPONSIBILITY TAKEN ON BY THE GOVERNMENT IN INJECTING BILLIONS OF DOLLARS TO STABILISE THE FUTURES EXCHANGE IS INCOMMENSURATE WITH THE DEGREE OF INFLUENCE THE GOVERNMENT HAD ON THE AFFAIRS OF THE EXCHANGE, THE HON RICHARD LAI SAID TODAY (WEDNESDAY).
SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE POLICY DEBATE, MR LAI SAID THAT IF THE GOVERNMENT DEEMED THAT THE WELL-BEING OF THE STOCK AND THE FUTURES MARKETS WAS OF SUCH IMPORTANCE AS TO WARRANT THE USE OF THE EXCHANGE FUND, THEN IT WOULD INDEED BE DIFFICULT RECONCILE WITH THE LATITUDE EXTENDED TO THE STOCK EXCHANGE DETERMINING THE CLOSURE AND BUSINESS ACTIVITIES OF THE EXCHANGES.
то IN
OWN
MR LAI SAID INVESTORS PLUNGED INTO THE MARKET AT THEIR RISK; BROKERS TOOK UP CLIENTS AT THEIR OWN RISK; AND THE GUARANTER CORPORATION CAME TO THE ARRANGEMENT AT ITS OWN RISK.
"BUT THE GUARANTEE CORPORATION HAD THE GOVERNMENT RESCUE PACKAGE TO FALL BACK ON; INSTITUTIONS ARE QUARANTEED то GET THEIR FULL SHARE OF PROFITS WHILE ORDINARY INVESTORS ARE LEFT то FACE BANKRUPTCY WITHOUT ASSISTANCE NOR SYMPATHY BECAUSE THEY MADE THE UNWISE DECISION," HE SAID.
THIS TRONY HAD GENERATED MUCH SUSPICION AS TO THE REAL PURPOSE OF USING THE EXCHANGE FUND, MR LAI SAID. HE QUESTIONED WHO WERE THE ACTUAL WINNERS IN THE RECENT STOCK MARKET CRISIS.
I AM SURE THIS IS A QUESTION ΤΟ WHICH THE GENERAL PUBLIC WOULD LIKE TO KNOW THE ANSWER, HE SAID.
(1
MR LAT WENT ON TO SAY THAT WHETHER THE CLOSURE OF THE STOCK EXCHANGE WAS RIGHT OR WRONG, IT SHOULD HAVE BEEN THE GOVERNMENT'S RESPONSIBILITY IN THE FIRST PLACE TO DETERMINE WHETHER TO SUSPEND TRADING OR NOT.
THE FACT THAT THE ADMINISTRATION
MERELY AGREED TO GO ALONG INTERESTS
PREPARED
WITH THE DECISION OF A SMALL GROUP OF PEOPLE WITH EXTENSIVE IN THE MARKETS WAS HARDLY CONVINCING THAT IT WAS EQUIPPED OR TO ASSUME THE COMMANDING ROLE IN A CRISIS.
FURTHER PLACED IF WK
HK ADDED THAT THE DECISION TO CLOSE THE STOCK MARKET DEMONSTRATED THE DANGER UNDER WHICH HONG KONG WOULD BE HAD A POLITICAL SYSTEM WHEREIN DECISIONS WERE MADE BY A SMALL GROUR OF ELITES. THE GOVERNMENT, NOW AND BEYOND, MUST BE AUTI:NOMOUS FOR IT TO DISCHARGE ITS ADMINISTRATIVE FUNCTIONS.
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IF THE PROPOSAL TO INSTALL
A GRAND
ELECTORAL COLLEGE WERE THE DECISIONS OF THE
EFFECTIVE CHECKS
ADOPTED FOR OUR FUTURE POLITICAL SYSTEM, ECONOMIC ELITE WOULD NOT EVEN BE SUBJECT TO THE AN INDEPENDENT GOVERNMENT,' HE SAID.
"I
BY
/THE ONLY