ዞን

3

MONDAY, SEPTEMBER in, 1989

LAW IT VESTS LEGISLATIVE "FOR NEW LAWS AND REVISIONS TO THE

ADMINISTRATIVE REGION. IT POWER IN THE LEGISLATURE OF THE SPECIAL

WILL ALSO MAKES IT CLEAR THAT HONG KONG'S INDEPENDENT JUDICIAL SYSTEM

EXCEPTION THAT THE POWER OF BE MAINTAINED INTACT, WITH THE SINGLE

THE PRIVY FINAL ADJUDICATION WILL REST IN HONG KONG INSTEAD OF COUNCIL IN LONDON - OR INDEED IN PEKING," SIR DAVID SAID.

REGULATION HONG KONG NEEDED AS ON THE QUESTION OF HOW MUCH

SAID: "IN HONG KONG, WB A FREE ENTERPRISE ECONOMY, THE GOVERNOR

UNDER-REGULATION AND BELIEVE THAT OVER-REGULATION UNDESIRABLE: WE MUST SEEK A MIDDLE WAY BETWEEN THE TWO."

"OUR BUSINESSMEN AND INDUSTRIALISTS

ARE BOTH

THAT UNDERSTAND INTERFERENCE IS NOT THE SAME AS NON-REGULATION," HE ADDED.

NON-

LIMITED BUT EFFECTIVE REGULATION SIR DAVID POINTED OUT THAT

OF LAW WERE KEY INGREDIENTS AND THE APPLICATION OF THE RULE MAINTAINING DOMESTIC AND INTERNATIONAL CONFIDENCE, AND IN CREATING ENVIRONMENT CONDUCIVE TO ECONOMIC GROWTH.

IN

AN

LEAVE OUR "IN GENERAL TERMS, THE GOVERNMENT'S POLICY IS TO INDUSTRIAL, COMMERCIAL AND FINANCIAL SECTORS FREE FROM UNNECESSARY REGULATION SO THAT THEY CAN COMPETE WITHOUT INHIBITION IN DOMESTIC AND WORLD MARKETS," SIR DAVID SAID.

ONLY THOSE THE GOVERNOR POINTED OUT THAT THIS MEANT IMPOSING REGULATORY MEASURES THAT WERE NECESSARY TO PROVIDE BOTH THE WORK FORCE TIME, AND THE INVESTOR WITH ADEQUATE PROTECTION, BUT AT THE SAME

WORLD TRADING APPLYING THE STANDARDS WHICH WERE EXPECTED OF A MAJOR AND FINANCIAL CENTRE.

"IN THE PAST, HONG KONG WAS PROBABLY UNDER-REGULATED BY CURRENT INTERNATIONAL STANDARDS," SIR DAVID NOTED.

BADLY

OUR

SECTOR JUFFERED BANKING RESULT. "PARTLY AS A

IN 1982 MARKET

AND THE THE

THE PROPERTY FOLLOWING

COLLAPSE OF

LOCAL BANKS ΤΟ PROTECT ORDINARY GOVERNMENT HAD TO RESCUE SOME DEPOSITORS FROM SERIOUS LOSSES.

SINCE UNDERTAKEN A

"WE LEARNT A LESSON FROM THIS. WE HAVE COMPREHENSIVE REVIEW OF OUR BANKING LEGISLATION TO MAKE SURE THAT COMMISSIONER OF BANKING IS ABLE TO EXERCISE PRUDENTIAL SUPERVISION A MORE EFFECTIVE WAY," THE GOVERNOR SAID.

THE

IN

MARKET

WHICH

IN THE SECURITIES SECTOR, SIR DAVID SAID THAT THE STOCK

VARIETY OF PROBLEMS CRASH IN OCTOBER 1987 SHOWED THAT WE HAD

"AS A RESULT, I APPOINTED A COMMITTEE NEEDED RADICAL TREATMENT,

REVIEW THE ENTIRE REGULATORY FRAMEWORK UNDER MR IAN HAY DAVISON TO

INDUSTRY," HE SAID. OF HONG KONG'S SECURITIES AND COMMODITIES TRADING

HE

COMMITTEE

HAD

POINTED OUT THAT THE MAIN RECOMMENDATIONS OF THE HAD ALL BEEN IMPLEMENTED AND THAT THE STOCK AND FUTURES EXCHANGES RECONSTITUTED THEMSELVES.

/"WE HAVE ...................

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