XN000022-1978-04-07 — Page 3

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FRIDAY, APRIL 7, 1978

+ IN SOME INSTANCES, EVEN THE STRICTEST OF CENTRAL BANK SUPERVISION HAS NOT PREVENTED PROBLEMS ARISING, MANY HAVE SINCE SAID THAT CONTROL ARRANGEMENTS BY MANAGEMENTS HAVE NOW BEEN ADEQUATELY STRENGTHENED. I HOPE SO AND, CERTAINLY, HERE IN HONG KONG, WE MUST NOT BECOME COMPLACENT SIMPLY BECAUSE OUR RECORD SO FAR HAS BEEN GOOD. CONTINUED VIGILANCE IS CALLED FOR, AND WHILE THE HONG KONG GOVERNMENT DOES NOT SEEK TO CONTROL, WE SHALL CONTINUE TO MONITOR THE MARKET AS BEST WE CAN,+ MR. HADDON-CAVE SAID.

BUT RESPONSIBILITY DID NOT ONLY REST WITH MANAGEMENTS AND GOVERNMENTS, MR. HADDON-CAVE CONTINUED.

HE STRESSED THAT HIGH PROFESSIONAL STANDARDS AMONG FOREIGN EXCHANGE DEALERS THEMSELVES ALSO HAD AN IMPORTANT ROLE TO PLAY.

HE ALSO BELIEVED THAT CODES OF PRACTICE WERE BEST ADMINISTERED BY THE DEALING PROFESSION ITSELF.

MR. HADDON-CAVE SAID HE UNDERSTOOD THAT THE HONG KONG FOREX CLUB, LIKE FOREX CLUBS IN SOME OTHER CENTRES, HAD BEGUN TO CONCERN ITSELF WITH THE IDEA OF SUCH A CODE.

+THIS IS ENCOURAGING, PARTICULARLY AS THE FOREIGN EXCHANGE MARKET HAS BEEN GROWING SO RAPIDLY IN SOUTH EAST ASIA, INCLUDING HONG KONG.+

HE POINTED OUT THAT THE EXPANSION OF ANY ACTIVITY CAN LEAD TO AN EROSION OF STANDARDS UNLESS ATTENTION IS ALSO PAID TO TRAINING AND MANAGEMENT.

+THE GROWING INTERNATIONALISATION OF FOREIGN EXCHANGE MARKETS HAS BEEN HELPFUL IN THIS REGARD AND SO I HOPE HAS OUR WILLINGNESS TC ALLOW THOSE WITH EXTENSIVE EXPERIENCE ELSEWHERE TO COME TO HONG KONG.

+BECAUSE OF OUR GEOGRAPHICAL SITUATION, OUR COMMUNICATIONS, OUR FINANCIAL INSTITUTIONS AND SERVICES, AND NOT LEAST BECAUSE OF OUR ADAPTABLE WORK FORCE, I THINK IT WOULD BE FAIR TO SAY THAT HONG KONG HAS RECENTLY EMERGED AS ONE OF THE MORE IMPORTANT FOREIGN EXCHANGE DEALING CENTRES IN ASIA.+

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