XN000022-1983-10-27 — Page 5

THURSDAY, 001. -7, 1983

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MR CHAN RECALLED THE SWIFT AND EFFECTIVE MEASURES+ RECENTLY TAKEN BY THE GOVERNMENT TO PEG THE HONG KONG DOLLAR AT $7.80 TO THE U.S. DOLLAR.

HE FELT CONFIDENT, HE SAID, THAT THE HK DOLLAR WOULD GRADUALLY STRENGTHEN TO $6.50 TO THE U.S. DOLLARS -- +PROVIDED THE PUBLIC DOES NOT STAMPEDE AGAIN AND OUR EXPORTS CONTINUE TO INCREASE.+

HE SAID THAT THE GOVERNMENT'S ABILITY IN MAINTAINING INTERNAL STABILITY ALLOWED FOR MORE CONCENTRATION OF ATTENTION ON THE DIPLOMATIC FRONT.

MR CHAN SAID THAT +A STABLE HONG KONG DOLLAR WOULD BENEFIT NOT ONLY HONG KONG BUT ALSO ALL HER TRADING PARTNERS, IN PARTICULAR CHINA IN HER MODERNISATION PROGRAMME.

+BEING GOOD NEIGHBOURS, WE WISH CHINA EVERY SUCCESS IN HER MODERNISATION PROGRAMME WHICH WE ARE HELPING WITH OUR FOREIGN EXCHANGE, EXPERTISE AND OTHER FACILITIES, HE SAID.

MR CHAN SAID HE HAD HEARD CRITICISMS ABOUT GOVERNMENT SPENDING +ON GRAND PLANS IN THE PAST FEW YEARS, +BUT HE WISHED TO POINT OUT THAT, AT A TIME WHEN THE WORLD WAS GOING THROUGH A LONG PERIOD OF RECESSION, HONG KONG WOULD HAVE BEEN IN DEEP TROUBLE WITH RISING UNEMPLOYMENT+ IF WE HAD SPENT LESS ON THE CONSTRUCTION OF THE MASS TRANSIT RAILWAY AND OTHER MAJOR BUILDING AND CONSTRUCTION WORKS.+

SPEAKING OF CRIMINALS WHO ARE NOT HONG KONG BELONGERS,

MR CHAN CALLED FOR A REVIEW OF THE DEPORTATION POLICY.

+THIS COULD BE AN EFFECTIVE DETERRENT, NOW THAT WE ALL KNOW THAT CHINA IS ADOPTING STIFF PENALTIES TOWARDS CRIMINALS.

→THIS DONE, THE POLICE WOULD BE IN A BETTER POSITION TO HANDLE UNFORSEEN EMERGENCIES,+ HE SAID.

HK LEGAL SYSTEM MUST CONTINUE: SWAINE ****

THE HON JOHN SWAINE TODAY REAFFIRMED HIS VIEW THAT THE FUTURE STABILITY AND PROSPERITY OF HONG KONG COULD ONLY BE ACHIEVED BY THE CONTINUATION OF BRITISH ADMINISTRATION AND OF THE PRESENT SYSTEM OF THE ADMINISTRATION OF JUSTICE.

SPEAKING IN SUPPORT OF THE MOTION OF THANKS FOR THE GOVERNOR SIR EDWARD YOUDE'S ANNUAL ADDRESS, MR SWAINE SAID IN THE LEGISLATIVE COUNCIL THAT HONG KONG OWED MUCH OF ITS SUCCESS TO THE SYSTEM BY WHICH THE LAWS OF THE TERRITORY ARE ADMINISTERED.

FOCUSSING HIS ATTENTION ON THE PULE OF LAW, MR SWAINE DESCRIBED IT AS + THE SINGLE BEST DESCRIPTION OF THE SYSTEM+ UNDER WHICH HONG KONG OPERATES.

/HE SAID