XN000022-1974-03-14 — Page 23

Thursday, March 14, 1974

In view of the vast sums of rents amounting to $72.8 million

which the government is expected to defray in the financial year 1974/75

for quartering and office accommodation, he suggested that it would be

a better investment in the long run for it to build and own properties,

especially since only the government would have access to 'free' land.

Turning to the operations of finance companies, he observed

that while he thought their presence could contribute in enhancing Hong

Kong as a major financial centre, he firmly believed that additional

legislation besides the size of minimum deposits as envisaged in the

Protection of Depositors Bill was necessary.

"I would envisage the deposit-taking finance companies playing

a role complementary to other financial institutions and forming an

integral part of our financial structure," Mr. Li said.

He felt that a full range of statutory regulations was not too

complicated and difficult to enforce as it has worked well in other

neighbouring countries,

However, in view of the time involved, Mr. Li advocated that

simple regulations be introduced through the Protection of Depositors

Bill to control those finance companies which take deposits.

The now regulations should include compulsory registration, payment

of an annual licence fee, a minimum paid-up capital, a minimum liquidity

ratio, a minimum size of deposit which finance companies can accept and the filing of monthly returns.

He felt that these requirements were not troublesome, and neither

"should they be too much work for the government to police".

/On the ............