XN000022-1973-07-18 — Page 16

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Wednesday, July 18, 1973

BILL PROHIBITING COMMODITY EXCHANGES

A report on the possibility of establishing a commodity exchange

in Hong Kong is now being prepared by a visiting British expert on the subject.

The Financial Secretary, the Hon. C.P. Haddon-Cave, told the

Legislative Council today that Mr. John Wilson, from the Bank of England had

been in Hong Kong for the past two and a half weeks conducting preliminary

enquiries, which had been wide-ranging.

Mr. Haddon-Cave made the remarks when moving the second reading

of the Commodity Exchanges (Prohibition) Bill 1973 which seeks to prohibit temporarily

the establishment or operation of commodity exchanges through which commodities

are to be bought and sold as futures,

Various markets and exchanges in existence on June 20, this year,

such as the daily rice auctions and the Gold and Silver Exchange, are excluded

from the legislation.

Mr. Haddon-Cave said the present legislation "thus prevents the

establishment and operation of commodity exchanges until such time as their

desirability has been established and further legislation has been enacted for

their proper regulation."

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