XN000022-1984-08-02 — Page 12

THURSDAY, AUGUST 2, 1984

11

+ IN ANY CASE, THE VOLUME OF PUBLIC COMMENT WHICH HAS ALREADY BEEN FORTHCOMING, SOME OF WHICH WAS REFLECTED THIS AFTERNOON BY MISS TAM AND MRS FAN, CLEARLY DEMONSTRATES THAT THE PEOPLE OF HONG KONG DO NOT NEED VERY LONG TO VOICE THE IR OPINIONS ON IMPORTANT MATTERS OF THIS SORT. I AM CONFIDENT THAT BY MID-SEPTEMBER WE SHALL HAVE OBTAINED A VERY CLEAR IDEA OF THE VIEWS OF THE MAJORITY OF THE POPULATION ON THE PROPOSALS.

+ CAN ASSURE MEMBERS THAT ALL THESE VIEWS AND, OF COURSE, THE VIEWS THEY HAVE EXPRESSED THIS AFTERNOON, WILL BE CONSIDERED MOST CAREFULLY AND WILL BE TAKEN INTO ACCOUNT IN THE PREPARATION OF THE DRAFT PAPER, WHICH, IN ITS TURN, WILL BE PLACED BEFORE THIS COUNCIL FOR DEBATE LATER THIS YEAR.

CONCLUSION

+SIR 1 CERTAINLY BELIEVE THAT THE PROPOSALS IN THE GREEN PAPER ON THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG CAN BE COMMENDED TO THE PUBLIC FOR EXAMINATION AND COMMENT AND I HAVE, THEREFORE, MUCH PLEASURE IN SUPPORTING THE MOTION. +

NO KNOWN CASE OF DTC'S FAILING TO PROVIDE RATE INFO

*****

THERE IS NO NEED TO INTRODUCE A STATUTORY REQUIREMENT THAT

A DEPOSIT-TAKING COMPANY SHOULD SUPPLY A BORROWER WITH THE

INFORMATION RELATING TO THE RATE OF INTEREST WHICH MUST BE FURNISHED BY A MONEY LENDER.

THIS WAS STATED BY THE ACTING FINANCIAL SECRETARY, THE HON

DOUGLAS BLYE, IN THE LEGISLATIVE COUNCIL TODAY.

REPLYING TO A QUESTION FROM THE HON PAULINE NG, MR BLYE EXPLAINED THAT UNDER A SECTION OF THE MONEY LENDERS ORDINANCE, A MONEY LENDER IS REQUIRED TO DISCLOSE TO A BORROWER THE RATE OF INTEREST CHARGED ON THE LOAN.

+THIS MUST BE DONE IN ONE OF TWO WAYS, EITHER AS A SIMPLE INTEREST RATE (THAT IS, IN EFFECT, INTEREST COMPUTED SOLELY ON THE PRINCIPAL, EXPRESSED AS A PER CENT PER ANNUM) OR AS A 'TRUE' RATE, WHICH TAKES ACCOUNT OF ANY DECREASE IN THE BALANCE OF PRINCIPAL OUTSTANDING IF, FOR EXAMPLE, REPAYMENT IS BY INSTALMENTS, HE SAID.

+

MR BLYE TOLD THE COUNCIL THAT HE WAS NOT AWARE OF ANY INSTANCES OF A DEPOSIT-TAK ING COMPANY FAILING TO PROVIDE A BORROWER WITH INTEREST RATE INFORMATION WHICH MATCHES THAT REQUIRED OF MONEY LENDERS.

+1 THEREFORE SEE NO NEED TO INTRODUCE A STATUTORY REQUIREMENT, MR BLYE SAID.

+

/14