XN000022-1973-01-17 — Page 2

Wednesday, January 17, 1973

CONFIDENCE EXPRESSED IN HONG KONG'S ECONOMY

Financial Secretary Speaks On The Stock Market

The Government has complete confidence in the underlying strength

of all sectors of Hong Kong's economy and of the great majority of public

companies.

The Financial Secretary, the Hon. C.P. Haddon-Cave, said this in

the Legislative Council today in reply to a question from the Hon. Janes Wu.

Mr. Wu had asked for a Government statement on the effects that

the phenomenal rise in shares and real-estate prices would have on the

cost of living, prices, wages, industries and the economy as a whole.

Mr. Haddon-Cave said the continuing strength and further development

indeed was put at risk by the

of Hong Kong's economy was not helped

existence of conditions and practices on the stock exchanges which inhibited

the orderly marketing of shares.

He also commented on recent actions by the Government following the

flurry of activity on the stock market last week.

Neither the Government nor the managements of the stock exchanges

took, or had taken, a view as to what was the "right" or "proper" level

of prices. "We have been concerned with a more fundamental aspect, namely

the working of the market mechanism. We have been concerned to see that

the market mechanism works

stimulants."

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and is allowed to work

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correctly without artificial

Mr. Haddon-Cave