XN000022-1984-03-29 — Page 11

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ON

THURSDAY, MARCH 29, 1984

ADMITTING THE VALIDITY OF VARIOUS ARGUMENTS FOR A REFLOAT, HE WARNED THAT +A PREMATURE RESTORATION OF THE FLOATING RATE REGIME, AT A TIME WHEN THE FUTURE OF HONG KONG STILL REMAINS UNCERTAIN, WOULD UNNECESSARILY EXPOSE OUR ECONOMY TO A HIGH RISK OF DESTABILISATION+.

HE SAID +OUR VULNERABILITY HAS BEEN FULLY DEMONSTRATED AS OF YESTERDAY AFTERNOON WHEN OUR FINANCIAL MARKET EXPERIENCED HAVOC IN RESPONSE TO CERTAIN ANNOUNCEMENTS FROM JUST A COUPLE OF COMPANIES.+

+DESPITE THE FACT THAT ONE MAY JUSTIFIABLY EXPRESS GREAT DISAPPOINTMENTS OVER THE DECISIONS TAKEN, THE DAMAGE TO THE DELICATE FLOWER OF CONFIDENCE HAS BEEN DONE.

+THE LESSON WE SHOULD DRAW FROM SUCH EXPERIENCE IS THAT WE MUST ALL RECOGNISE OUR VULNERABILITY AND THAT WE SHOULD NOT MAKE ANY HASTY DECISIONS THAT WOULD HAVE A BEARING ON THE STABILITY OF OUR ECONOMY.+

MR CHEONG SAID HE FELT IT DUTY BOUND TO URGE THE

GOVERNMENT NOT TO PREMATURELY CHANGE THE HONG KONG DOLLAR LINK.

HE CONCLUDED BY CONGRATULATING THE FINANCIAL SECRETARY FOR DEVISING AN APPROPRIATE MIX OF PROPOSALS FOR THE PROBLEMS FACING US NEXT YEAR.

ECONOMY INSEPARABLE FROM 1997 - CHEUNG YAN-LUNG *****

THE HON CHEUNG YAN-LUNG AT THE BUDGET DEBATE TODAY CALLED FOR AN EARLY ANNOUNCEMENT ON THE CURRENT STATE OF THE SINO-BRITISH TALKS ON THE FUTURE OF HONG KONG.

MR CHEUNG SAID THAT IT WOULD BE UNREALISTIC TO DEBATE THE ECONOMIC PROSPECTS WITHOUT MENTIONING 1997.

NOTING THAT THERE WAS AS YET NO SUBSTANTIVE STATEMENT TO INDICATE WHAT HAD BEEN DISCUSSED AT THE TALKS, HE SAID, +HOW MANY USEFUL AND CONSTRUCTIVE ANNOUNCEMENTS MUST WE ENDURE?+

+IT WOULD BE EVEN MORE USEFUL AND CONSTRUCTIVE IF THE ANNOUNCEMENT WOULD CONTAIN SOME FORM OF GUARANTEE ON MAINTAINING THE CAPITALIST SYSTEM IN THE POST-1997 HONG KONG.

+THIS WOULD HELP TO ALLAY THE FEAR AND UNCERTAINTY WHICH HAVE LARGELY AFFECTED OUR ECONOMY FOR THE PAST FEW YEARS. SUCH AN ANNOUNCEMENT WILL GO A LONG WAY IN HELPING OUR ECONOMY TO A ROAD OF FULL RECOVERY, MR CHEUNG SAID.

/TOUCHING BRIEFLY