XN000022-1983-05-20 — Page 16

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FRIDAY, MAY 20, 1983

HE: WELL, IT HAS CERTAINLY WEAKENED BUT TO ME, THE MAIN ISSUE IS NOT THE RATE AT ANY PARTICULAR TIME BUT THE TREND AND AS I SAY, I BELIEVE THAT THE STRENGTH OF THE ECONOMY, THE UNDERLYING STRENGTH OF THE ECONONY, IS THERE AND I HOPE IT WILL BE CLEAR FROM WHAT I HAVE SAID THAT AS FAR AS THE TALKS ARE CONCERNED, THE TALKS ARE MOVING AND ARE MOVING IN THE RIGHT DIRECTION, SO I THINK THESE ARE INGREDIENTS WHICH SHOULD BE TAKEN OPTIMISTICALLY RATHER THAN PESSIMISTICALLY.

J31 DO YOU THINK IN ANY WAY THAT THE FALL OF THE DOLLAR AND ALL THAT'S CONNECTED WITH IT, IS TO DO WITH SUGGESTIONS THAT HONG KONG IS GOING TO HAVE A HONG KONG CHINESE GOVERNNENT FAIRLY SOON?

HE: NO, I DON'T THINK IT'S THAT 1 THINK PEOPLE REALISE THAT THESE TALKS ARE GOING TO TAKE A LITTLE TIME. THAT A CERTAIN AMOUNT OF PATIENCE IS NECESSARY AND I DON'T THINK THEY ARE EXPECTING ANY CHANGES - ANY EARLY CHANGES IN THE HONG KONG SYSTEN. SO I WOULDN'T HAVE THOUGHT THAT THERE IS THAT KIND OF DRAMATIC FEELING ABOUT.

JB: NELL, ONE STRANGE THING IS THAT THERE'S BEEN A LOT OF TALK ABOUT THE RECOVERY OF HONG KONG'S INDUSTRY, THE RECOVERY OF HONG KONG'S ECONOMY AT THE SAME TIME THE DOLLAR GOES DOWN. HOW JOES ONE SQUARE THESE THO?

HE: WELL, THOSE ARE NOT THE ONLY THO FACTORS IN THE CALCULATIONS. 【 HODLY SAY DE ARE DEALING WITH WORLD EXCHANGE RATES, NOT SIMPLY THE EXCHANGE RATE OF THE HONG KONG DOLLAR AND THE AMERICAN DOLLAR. ONE OF THE FACTORS OBVIOUSLY, IS THAT THE AMERICAN DOLLAR IS GETTING VERY STRONG, AND I DON'T WANT TO IDENTIFY THE PARTICULAR REASONS AT ANY PARTICULAR TIME BECAUSE AFTER ALL, THIS IS AN OPEN AND COMPLICATED MARKET AND I DON'T WANT TO PUT MYSELF IN THE POSITION OF TRYING TO READ THE MINDS OF THE PEOPLE WHO ARE OPERATING IT. I WILL AGAIN ONLY REPEAT THAT THE GOVERNMENT IS IN CLOSE AND CONSTANT TOUCH WITH THE MAIN INSTITUTIONS ON THIS PROBLEN.

ANOTHER FACTOR IN THIS TUMULTUOUS YEAR YOU HAVE HAD, APART FROM 1997 AND THE FINANCIAL MARKET- EVERY DAY THERE ARE MORE AND MORE IT SEENS REPORTS OF SERIOUS CRIMES AND I THINK PEOPLE ARE HORRIED. DO YOU THINK LAN AND ORDER IS BEGINNING TO BREAK DOWN IN HONG KONG?

HE: HELL, NO-ONE IS COMPLACENT ABOUT THE EXTENT OF CRIME HERE IN HONG KONG, BUT I DON'T THINK LAW AND ORDER IS BEGINNING TO BREAK DOWN. THE JETECTION RATE HERE IS COMPARATIVELY HIGH BY INTERNATIONAL STANDARDS, BUT THAT DOESN'T MEAN THERE ISN'T TOO MUCH CRINE. BUT TO ME, THE ANSWER TO LAW AND ORDER AND CRIME IS NOT A ONE-OFF PROGRAMME, IT'S A VERY DETERMINED AND A VERY RELENTLESS ATTACK ON CRIME BY A WELL-ORGANISED, A WELL-MARNED AND INDEED, NELL-MOTIVATED POLICE FORCE. I THINK WE HAVE THAT BUT IN ORDER TO MAKE THAT ATTACK EFFECTIVE, THEY NEED THE CO-OPERATION OF THE PUBLIC AND I THINK THEY ARE GETTING INCREASINGLY THE CO-OPERATION OF THE PUBLIC. BUT WE CAN'T STAND STILL - HE MUST ENSURE THAT THE POLICE USE THE HOST UP-TO-DATE METHODS, HAVE THE MOST UP-TO-DATE EQUIPMENT= AND THAT THEY ORGANISE THEMSELVES IN SUCH A HAY AS TO MAKE THEMSELVES MOST EFFECTIVE ON THE GROUND WHERE IT MATTERS, AND I AM IN CONSTANT TOUCH WITH THE COMMISSIONER OF POLICE ON THIS AND AS I THINK YOU KNOW, HE IS NOW ENGAGED IN A RESTRUCTURING EXERCISE TO ENSURE THAT HIS RESOURCES ARE USED TO THE BEST ADVANTAGE. SO MY ANSHER TO CRIME IN HONG KONG IS INDEED TO TAKE IT SERIOUSLY, AND TO MAINTAIN THIS CONSTANT AND RELENTLESS ATTACK ON IT.

/JB: AND IT'S