XN000022-1975-06-18 — Page 3

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WEDNESDAY, JUNE 18, 1975

HE NOTED THAT HONG KONG'S COMPETITORS AND OTHERS MIGHT ALSO WONDER WHETHER THE PRINCIPLES ON WHICH HONG KONG HAS FLOURISHED WEGE DEING ERODED, WILL THEY NOT WONDER IF CUR FAITH IN THE REWARDS OF ENTERP1SE HAS BECCHE CLOUDED DY CAUTION? WILL THEY THINK THAT THE GOVENIMENT. IS INMIDITICS IDETIATIVE AT THE DELEST OF ALL OVER-DEVELOPED SENSE OF PATERIJALIOM?+ HE ASKED.

SIR DENYS SAID HE WAS POSING THE QUESTIONS SO THAT SERIOUS CONSIDERATION COULD DE GIVEN TO THE ILICATIONS INVOLVED,

HE STRESSED THAT HE DID NOT WANT TO FORESHADOW THE SUBSTANCE OF AN EVENTUAL DECISION, BUT UNGED COUNCIL TO REMEMBER THAT HONG KONG IS A SOPHISTICATED INTERNATIONAL COMMERCIAL, FIDUSTRIAĻ AND FINANCIAL CENTRE.

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EARLIER, THE SENIOR UNOFFICIAL MEMBER, DR. THE HON. CHUNG SZE-YUEN OUTLINED THE REASONS WHY MOST OF HIS COLLEAGUES COULD NOT SUPPORT THE MOTION.

THE UNOFFICIALS, DR. CHUNG SAID, HAD HELD THREE MEETINGS TO DISCUSS THE ISSUE ́AND HAD HAD A LONG SESSION WITH THE ACTING COMMISSIONER FOR SECURITIES.

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THEY HAD BASED THEIR ASSESSMENTS ON THREE ASPECTS NEED FOR A COMMODITY EXCHANGE, THE BENEFITS TO BE GAINED FROM IT, AND FEARS THAT SUCH AN EXCHANGE WOULD BE AGAINST THE COMMUNITY'S INTEREST.

ON THE FIRST COUNT, DR. CHUNG SAID, NO CLEAR, DEFINITE AND PROVEN NEED HAD DEEN ESTABLISHED FOR A COMMODÍTY EXCHANGE IN HONG KONG, BASED CU THE PRESENT PATTERN OF OPERATIONS OF THE RELEVANT INDUSTRIES.

SO FAR, HE SAID, NO REPRESENTATIONS EXPRESSING THE NEED FOR A COMMODITIES EXCHANGE HAD BEEN RECEIVED FROM ANY LOCAL TRADE OR INDUSTRY WHICH USES COTTON, SUGAR, ZINC OR COPPER. ON THE CONTRARY, HE PERSONALLY HAD RECEIVED MORE THAN 10 LETTERS DURING THE PAST FEW WEEKS FROM INDIVIDUALS ALL OPPOSING THE ESTABLISHMENT OF SUCH AN EXCHANGE.

THE UNOFFICIALS AGREED, HOWEVER, THAT A COMMODITY EXCHANGE WOULD ENHANCE HONG KONG'S IMAGE AS AN INTERNATIONAL FINANCIAL CENTRE AND WOULD CREATE ADDITIONAL JOB OPPORTUNITIES FOR POSSIBLY 300 TO 600 PEOPLE. THEY ALSO RECOGNISED THAT IT WOULD GENERATE ADDITIONAL' BUSINESS FOR BANKS, FINANCIAL HOUSES AND TRADING INSTITUTIONS.

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/ON THE THIRD