XN000022-1975-02-05 — Page 12

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WEDNESDAY, FEBRUARY 5, 1975

NO IMPROPER TRADING OF TELEPHONE SHARES

SAYS FINANCIAL SECRETARY

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UP TO THE PRESENT TIME, THERE HAS BEEN NO INDICATION OF ANY IMPROPER TRADING IN THE SHARES OF THE TELEPHONE COMPANY, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE SAID TODAY.

HE WAS REPLYING TO THE HON. T.S. LO IN LEGISLATIVE COUNCIL WHO WANTED TO KNOW WHAT THE GOVERNMENT'S CONSIDERATIONS WERE, IN VIEW OF THE COMPANY'S FINANCIAL UNCERTAINTIES, FOR NOT SUSPENDING THE SHARES FROM BEING TRADED TO PREVENT ANY POSSIBILITY OF THOSE MORE KNOWLEDGEABLE IN ITS AFFAIRS GAINING AN UNFAIR ADVANTAGE OVER THOSE MORE IGNORANT.

HE NOTED THAT IT WAS ONLY WHEN THE GOVERNMENT DECIDED"," AS PART OF THE PACKAGE OF INTERIM MEASURES HE ANNounced "ThathÉTM COUNCIL ON JANUARY 22, TO AS THE COMPANY'S OARD TO RECOMMEND TO SHAREHOLDERS THAT NO DIVIDEND PAYMENTS SA ULD BE MADE IN 1975 THAT THE QUESTION OF A POSSIBLE EFFECT ON THE SHARE PRICE AROSE,

BUT THIS INFORMATION, HE SAID, WAS ONLY PUT TO THE CHAIRMAN OF THE COMPANY, AS A MATTER OF COURTESY, ON THE MORNING THE ANNOUNCEMENT WAS MADE.

+EFFECTIVELY, THEREFORE, THE GENERAL BODY OF SHAREHOLDERS WERE AWARE OF THE POSITION AT VIRTUALLY THE SAME TIME AS THE COMPANY WHEN I MADE MY ANNOUNCEMENT.+

MR. HADDON-CAVE RECALLED THAT THE COMPANY'S APPLICATION FOR INCREASED CHARGES WAS PASSED TO THE ADVISORY COMMITTEE ON TELEPHONE SERVICES FOR THEIR CONSIDERATION AND ADVICE AFTER IT WAS RECEIVED TOWARDS THE END OF AUGUST, AND THIS WAS A MATTER OF PUBLIC KNOWLEDGE.

AT THE SAME TIME, HE SAID, A DETAILED ANALYSIS OF THE COMPANY'S FINANCIAL POSITION WAS STARTED WITHIN THE GOVERNMENT AND THIS ANALYSED INFORMATION WAS THEN PASSED ON TO THE ADVISORY COMMITTEE AND ITS FINANCE SUB-COMMITTEE.

THE FINANCIAL SECRETARY ADDED THAT ALL THIS WAS PART OF THE NORMAL PROCESS OF VETTING BY THE GOVERNMENT OF ANY APPLICATION FOR AN INCREASE IN PUBLIC UTILITY CHARGES AND IT IN NO WAY JUSTIFIED ANY SUSPENSION OF TRADING IN THE SHARES OF THE COMPANY.

+ INDEED, AND IN FACT, DURING THIS PRESENT TIME, THERE WAS NO SIGN OF ANY TELEPHONE COMPANY SHARES,+ HE SAID.

PERIOD AND UP TO THE IMPROPER TRADING IN

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/HE EMPHASISED