XN000022-1978-02-13 — Page 2

MONDAY, FEBRUARY 13, 1975.

FINANCIAL SECRETARY OUTLINES IMPORTANCE OF BANKING INDUSTRY

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THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE, SAID TODAY (MONDAY) THE BANKING INDUSTRY IS +CRITICAL TO THE PROSPERITY AND STABILITY OF HONG KONG+.

MR. HADDON-CAVE WAS SPEAKING AT THE OPENING OF A NEW BRANCH OF THE HONG KONG AND SHANGHAI BANK AT CHINA BUILDING IN CENTRAL.

HE SAID THE BANKING INDUSTRY AS A WHOLE, AND THE HONG KONG BANK PARTICULARLY, HAS SERVED HONG KONG EXCEEDINGLY WELL OVER THE PAST 30 YEARS. MR. HADDON-CAVE SAID HONG KONG NOT ONLY NEEDS TO BE, BUT DESERVES TO BE WELL SERVED BY ITS FINANCIAL INSTITUTIONS.

BUT BECAUSE THE BANKING INDUSTRY'S ROLE IS SO CRITICAL IT HAS HAD TO BE REGULATED RATHER MORE CLOSELY THAN OTHER PARTS OF THE ECONOMY.

+ THE COROLLARY TO THIS IS THAT THE GOVERNMENT BY WHICH I MEAN THE ADMINISTRATION IN ASSOCIATION WITH THE EXECUTIVE AND LEGISLATIVE COUNCILS - HAS AN OBLIGATION TO CONSULT WITH THE

INDUSTRY THROUGH, FOR EXAMPLE, THE SANKING ADVISORY COMMITTEE, WHEN CONSIDERING POLICY DECISIONS WITH DIRECT OR EVEN INDIRECT -

IMPLICATIONS FOR THE INDUSTRY.+

MR. HADDON-CAVE ALSO NOTED THAT THE GOVERNMENT HAD A FURTHER OBLIGATION TO TAKE THE INDUSTRY'S VIEWS SERIOUSLY.

*AND IT DOES+ HE SAID, THOUGH THE GOVERNMENT CANNOT AVOID AN OVER-RIDING OBLIGATION ULTIMATELY TO MAKE UP ITS OWN MIND HAVING REGARD TO THE VIEW IT FORMS OF THE BROAD PUBLIC INTEREST.+

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