XN000022-1979-04-11 — Page 3

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ARA SAL D

*BUT RIGHT NOW, WE ARE HAVING GREAT DIFFICULTY IN MEETING DEMANDS FROM NEW USERS NEW COMMERCIAL USERS,+ MR. OSMOND

STRESSED.

AT THIS POINT, MR. PURVES EMPHASISED THAT THE GOVERNMENT HAD INSISTED ALL ALONG AND WILL CONTINUE TO INSIST THAT THE MANUFACTURING INDUSTRY MUST BE GIVEN THE OIL IT NEEDS IN ORDER TO KEEP EXPORTS GOING BECAUSE EXPORTS ARE OUR LIFE-BLOOD.+

HE SAID THE OIL COMPANIES WERE WELL AWARE OF THIS. +THEY WERE AWARE OF IT IN 1973-74. THEY ARE AWARE OF IT NOW AND WE WILL DO EVERYTHING WE CAN TO ENSURE THAT THIS POLICY IS FIRMLY MAINTAINED, HE ADDED.

MR. ARMITAGE ADVOCATED DAYLIGHT SAVING WHICH HE FELT WOULD BE THE MOST SIGNIFICANT CONTRIBUTOR TO SAVING FUEL OIL IN HONG KONG.

BUT MR. PURVES POINTED OUT THAT THE LATEST FIGURES AVAILABLE SHOWED THAT DAYLIGHT SAVING WOULD BE ABOUT ONE PER CENT.

DAYLIGHT SAVING WAS AN IMPORTANT PART IN THE SAVE FUEL CAMPAIGN, MR, PURVES SAID, BUT NOT THE MOST IMPORTANT PART.+

+THERE ARE OTHER THINGS TO CONSIDER WITH RESPECT TO DAYLIGHT SAVING -- IT HAS TO BE ONE OF SEVERAL ITEMS WHICH CALLS FOR CONSIDERATION AND THAT IS WHAT WE ARE DOING AT THE MOMENT. WE ARE CONSIDERING SEVERAL PARTS OF WHAT IS QUITE A BIG EQUATION,+ MR. PURVES SAID.

+OVERALL, AT THE MOMENT THERE IS NO PANIC, THERE IS NO NEED TO GET TOO EXCITED, HE SAID.

EVERYTHING, MR. PURVES SAID, IS UNDER CONTROL AND GOING QUITE WELL.

+BUT WE'RE NOT BEING COMPLACENT,+ HE ADDED.

TIMELY MOVE TO ADAPT TO FLOATING

EXCHANGE RATE REGIME

******

THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE AT THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) MOVED THE SECOND READING OF THREE AMENDMENT BILLS RELATING TO THE HONG KONG DOLLAR BALANCES AND BANKS' MINIMUM LIQUIDITY RATIOS.

THEY ARE THE EXCHANGE FUND (AMENDMENT) BILL 1979, THE BANKING (AMENDMENT) BILL 1979 AND THE DEPOSIT-TAK ING COMPANIES (AMENDMENT) BILL 1979.

THE FIRST BILL SEEKS TO LIMIT THE EXTENT TO WHICH THE GOVERNMENT'S HONG KONG DOLLAR BALANCES CAN FORM A BASE FOR THE CREATION OF CREDIT TO THE ECONOMY.

/IT WILL,