XN000022-1973-03-28 — Page 24

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Wednesday, March 28, 1973

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Speaking on the Securities Advisory Council, which would come

into being after the enactment of the proposed Securities Bill, Mr.

Haddon-Cave said the Council would be provided with legal powers to

curb more fundamental abuses which had the effect, in one way or

another, of rigging or distorting the market in particular securities.

"But again the Securities Bill will not give the Securities

Council powers to pass judgement on the general level of prices in the

stock market, which is a matter for market forces to decide," he

said.

The Financial Secretary said the complicated legal drafting

of the Securities Bill was well in hand and should be before the

Legislative Council in the early summer. The Bill, he said, would

cover all aspects of trading in securities.

Mr. Haddon-Cave said he did not believe there was any more

the Government should do to control stock market operations at the

present time beyond the measures he had re-stated,

"In other works, I am afraid I cannot agree with my honourable

friend Mr. Wilfred Wong that there is either a short term or longer

term need to increase further the rate of stamp duty on share

transactions announced in the Budget Speech, and I doubt whether on

reflection, he would press it today.

"Certainly,