XN000022-1982-03-10 — Page 13

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+THE SAME CRITERIA WILL BE FOLLOWED WHEN I MAKE CONSEQUENTIAL PROPOSALS TO REVISE PENALTIES UNDER THE BOILERS AND PRESSURE RECEIVERS REGULATIONS,+ HE ADDED.

THE BILL ALSO AMENDS THE PRINCIPAL ORDINANCE TO TAKE INTO ACCOUNT THE CREATION OF CERTAIN PUBLIC SERVICE POSTS.

DEBATE ON THE BILL WAS ADJOURNED.

+

* INADVERTENT SIDE-EFFECT' CORRECTED

***

A NEW CLAUSE WAS ADDED TO THE DEPOSIT-TAKING COMPANIES (AMENDMENT) BILL 1982 DURING THE COMMITTEE STAGE IN THE LEGISLATIVE COUNCIL TODAY TO CORRECT AN INADVERTENT SIDE-EFFECT OF THE AMENDMENT TO THE FIRST SCHEDULE TO THE ORDINANCE SO THAT NORMAL INTERNATIONAL MONEY MARKET OPERATIONS WOULD BE ABLE TO CONTINUE UNHINDERED.

THE ACTING FINANCIAL SECRETARY, THE HON HENRY CHING, IN MOVING THE ADDITION, SAID IT HAD BEEN SUGGESTED BY THE HONG KONG DEPOSIT-TAKING COMPANIES ASSOCIATION THAT THE AMENDMENT.

IN CLAUSE 17, TAKEN TOGETHER WITH SECTION 8(2) (A) OF THE ORDINANCE, COULD PREVENT A DEPOSIT-TAK ING COMPANY FROM OBTAINING A SMALL OVERDRAFT OR OTHER ADVANCE FROM A BANK OUTSIDE HONG KONG IN A CURRENCY OTHER THAN THE HONG KONG DOLLAR.

THE NEW CLAUSE 2A, HE SAID, AMENDS SECTION 8(2) (A) OF THE ORDINANCE, WITH CONSEQUENTIAL AMENDMENTS TO OTHER SECTIONS.

+THE RESULT WILL BE THAT A DEPOSIT-TAKING COMPANY CAN TAKE A DEPOSIT (WHICH BY DEFINITION INCLUDES AN OVERDRAFT) OF ANY SIZE, IN ANY CURRENCY, AND OF ANY MATURITY, FROM A BANK, WHETHER OR NOT THAT BANK IS LICENSED UNDER THE BANK ING ORDINANCE,

HE SAID.

ALSO AT COMMITTEE STAGE, THE ACTING FINANCIAL SECRETARY MOVED AN AMENDMENT TO CLAUSE 2(A) OF THE BANKING (AMENDMENT) BILL 1982 TO CORRECT AN ANOMALY IN THE PROPOSED DEFINITION OF A +LOCAL REPRESENTATIVE OFFICE+.

MR CHING SAID THE PROPOSED DEFINITION, AS PRESENTLY DRAFTED, WOULD INCLUDE THE BRANCHES IN HONG KONG OF CERTAIN BANKS INCORPORATED OUTSIDE HONG KONG WHICH ARE REGISTERED OR LICENSED UNDER THE DEPOSIT-TAKING COMPANIES ORDINANCE.

+THIS IS AN UNUSUAL SITUATION WHICH EXISTS ONLY BECAUSE THESE INSTITUTIONS DO NOT HAVE THE WORD BANK IN THEIR TITLE, THOUGH THEY ARE RECOGNISED AND SUPERVISED AS BANKS IN THEIR COUNTRIES OF ORIGIN.

IT IS CLEARLY APPROPRIATE THAT THEIR ACTIVITIES IN HONG KONG, WHICH INCLUDE THE BUSINESS OF TAKING DEPOSITS, SHOULD BE REGULATED AND SUPERVISED UNDER THE DEPOSIT-TAKING COMPANIES ORDINANCE RATHER THAN UNDER THE NEW SECTIONS OF THE BANKING ORDINANCE COVERING REPRESENTATIVE OFFICES.+

MR CHING SAID THE AMENDMENT WOULD PREVENT ANY ARGUMENT AS TO WHICH OF THE TWO ORDINANCES APPLIED TO THESE DEPOSIT-TAKING

COMPANIES.

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