XN000022-1979-03-29 — Page 7

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THURSDAY, MARCH 29, 1979

CREDIT CREATION

HE THOUGHT THE FINANCIAL SECRETARY'S PROPOSALS TO LIMIT CREDIT CREATION SEEM SENSIBLE IN THE PARTICULAR STRUCTURE OF HONG KONG'S FINANCIAL SECTOR.

WHILE IT MAY BE ARGUED THAT THE BANKS ARE BEING ASKED TO DO THE GOVERNMENT'S DIRTY WORK, BUT THIS IS CERTAINLY PREFERABLE TO THE ALTERNATIVE OF GOVERNMENT DIRECTIVES AND THE ESTABLISHMENT OF NEW MACHINERY TO CONTROL THE SUPPLY OF CREDIT, WHICH THE FINANCIAL SECRETARY IS QUITE RIGHTLY KEEN TO AVOID, HE SAID.

HE SAID HE WAS SURE, FURTHERMORE, THAT SOME PRIORITY WILL BE GIVEN TO THOSE WHO WISH TO BORROW TO FINANCE INDUSTRIAL INVESTMENT OR EXPORTS.

CONCLUSION

MR. NEWBIGGING SAID THE GOVERNMENT AND LEADERS IN THE PRIVATE SECTOR HAVE THESE UNDERLYING OBJECTIVES: MAKING HONG KONG A BETTER, HAPPIER AND MORE PROSPEROUS PLACE IN WHICH TO LIVE AND WORK, CREATING AN ATMOSPHERE OF STABILITY AND CONFIDENCE WHICH WILL ENCOURAGE LONG TERM TRADE AND

INVESTMENT, AND DEVELOPING A SOCIAL AND ECONOMIC STRUCTURE WHICH WILL BENEFIT OUR RESIDENTS AND ENABLE US TO LIVE

IN HARMONY WITH OUR NEIGHBOURS IN THE REGION.

HE POINTED OUT TWO FACTORS WHICH COULD PLAY AN IMPORTANT PART IN THE FUTURE COURSE OF THESE EVENTS: THE INFLUX OF REFUGEES AND IMMIGRANTS WHICH SEEMS LIKELY TO BECOME AN

INCREASING PROBLEM IN THE FORTHCOMING YEAR, AND THE CURRENT VISIT OF THE GOVERNOR TO CHINA.

THE VISIT REFLECTS THE EXCELLENT STATE OF THE IMPORTANT TRIANGULAR RELATIONSHIP BETWEEN LONDON, PEKING AND HONG KONG WHICH COUPLED WITH THE EXTENSION OF THE GOVERNOR'S TERM OF

PROVIDES MUCH GROUNDS FOR OPTIMISM IN THE CONTEXT OF THE EFFECT ON OUR ECONOMY ALONE.

OFFICE

INDUSTRIAL-DEVELOPMENT FINANCE CORPORATION SUGGESTION SUPPORTED

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THE HON. OSWALD CHEUNG AT THE LEGISLATIVE COUNCIL TODAY (THURSDAY) FULLY SUPPORTED SUGGESTIONS FOR THE CREATION OF AN INDUSTRIAL-DEVELOPMENT FINANCE CORPORATION, WITH LOANS FOR INDUSTRIAL AND TRADE DEVELOPMENT PROJECTS, AT PREFERENTIAL RATES OF INTERESTS, OUT OF HONG KONG'S FISCAL RESOURCES.

+I WOULD