XN000022-1972-11-01 — Page 2

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Wednesday, November 1, 1972

"It is not the purpose of the Bill to establish any form of government

vetting machinery over new issues, but only to make sure that adequate and

accurate information is given in prospectuses.

"If companies whose prospects are not particularly sound come to

the market, this should be revealed in the prospectuses and it will be up to

the public and the Press to form their own judgements as to their worth," he said.

Earlier in his speech before dealing with the Bill itself, Mr. Haddon-

Cave made three preliminary points.

First, he said, he makes no apology for the fact that the Bill is

being introduced into the Council more than a year after the finalisation of the

Report of the Companies Law Revision Committee to which, in part, it seeks to

give effect.

He explained: "The Hong Kong economy is one which thrives on free

enterprise and when the Government makes proposals which interfere with the

operations of the market mechanism, it behoves us to ensure that what we are

and that the rules laid down will proposing is in the broader public interest;

improve, and not simply impede, the way in which the market mechanism operates."

Secondly, he said, contrary to what some less responsible critics

have tried to claim, it is not a simple task to consider all the recommendations

in the Report, and, where they are acceptable, to translate then into the

precise language of legislation.

"It is, in fact, a difficult and time consuming task and it is important

to avoid making mistakes," he added.

Finally, the Financial Secretary stressed that the Bill and the others

to follow are not being introduced in any sense of panic, but are being brought

forward after careful and dispassionate consideration.

/He continued: ................