XN000022-1975-07-30 — Page 2

WEDNESDAY, JULY 30, 1975

VOTE ON COMMODITY EXCHANGE ADJOURNED

TO AUG. 13

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THE LEGISLATIVE COUNCIL WILL VOTE ON THE CONTROVERSIAL CMMODITIES EXCHANGE ISSUE AT ITS NEXT SITTING ON AUGUST 13

TH LAST MEETING DEFORE COUNCIL GOES INTO RECESS.

THE FINANCIAL. SECRETARY, THE HON, PHILIP HADDON-CAVE, IVE THAT THE VOTE DE A JOURNED TO ENABLE MEMBERS TO CONSIDER A ANDED VERSION OF THE ORIGINAL MOTION WHICH SEEKS IGINATIVE COUNCIL APPROVAL IN PRINCIPLE TO SET UP A COMMODITY FICHANGE IN HONG KONG.

IN ORDER TO REFLECT EXPLICITLY THE IMPORTANCE BOTH THE GOVERNMENT AND THE UNOFFICIALS ATTACH TO THE ASPECT OF PUBLIC INTEREST, THE FINANCIAL SECRETARY ADDED A QUALIFICATION TO THE ORIGINAL MOTION WHICH READS *.....

..... PROVIDED THAT LEGISLATIVE MEASURES ARE MADE AND ENFORCED EFFECTIVELY WITH PARTICULAR REFERENCE TO THE NEED TO MINIMISE SOCIAL HAZARDS TO THE ORDINARY CITIZENS OF HONG KONG.+

MR. HADDON-CAVE SAID THAT HAVING LISTENED TO THE UNOFFICIALS, ON REFLECTION THE WORDING OF THE MOTION MAY HAVE INADEQUATELY REFLECTED THE IMPORTANCE OF THIS ASPECT OF PUBLIC INTEREST AND THE DEGREE TO WHICH THE UNOFFICIALS' CONCERN WAS SHARED BY THE GOVERNMENT.

THE FINANCIAL SECRETARY SAID THE PURPOSE BEHIND INTRODUCING THE MOTION ON MAY 21 WAS TO PROVIDE THE UNO,FICIALS WITH ANOTHER OPPORTUNITY TO EXPRESS THEIR VIEWS ON THE WHOLE IDEA OF TRADING IN COMMODITY FUTURES IN HONG KONG IN ADVANCE OF LEGISLATION DEING DRAFTED SO AS TO ENABLE A SELECTED GROUP, INTERESTED IN SETTING UP AN EXCHANGE, TO CONTINUE WITH THEIR PLANNING IN

ASONABLE CONFIDENCE.

HE RECALLED THAT THE GROUP HAD DEEN SELECTED LAST YEAR FOR FURTHER DISCUSSIONS WITH A VIEW TO THEIR BEING LICENSED TO

ER TE AN EXCHANGE, AFTER VERY CAREFUL CONSIDERATION OF A NUMDER

PROPOSALS TO ESTABLISH AN EXCHANGE IN HONG KONG.

AT THE TIME, IT WAS INTENDED THAT THESE DISCUSSIONS WOULD CENT ON THE RULES AND PROCEDURES THE GROUP PROPOSED FOR THE MEME RSHIP ALD ORGANISATION OF THE EXCHANGE AND THE CONDUCT OF ITS OPERATIO. 3. AT THE SAME TIME, THE GOVERNMENT, FOR ITS PART, INTELDED TO ROCEED WITH, THE DRAFTING OF LEGISLATION TO DEFINE THE TERMS UN ER LHICH AN EXCHANGE WOULD BE LICENSED TO OPERATE.

MR. HADDON-CAVE ASSURED COUNCIL THAT IT WAS THE GOVERNMENT'S FIRM INTENTION TO ENSURE THAT OPPORTUNITIES FOR SPECULATION BY SMALL INVESTORS WOULD BE MINIMISED.

/+I CAN FURTHER