XN000022-1984-12-14 — Page 7

FRIDAY, DECEMBER 14, 1984

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CONTINUED FINANCIAL ROLE SEEN FOR HK

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THE DRAFT AGREEMENT ON THE FUTURE OF HONG KONG PROVIDED THE INGREDIENTS FOR MAINTAINING THE STATUS OF HONG KONG AS AN INTERNATIONAL FINANCIAL CENTRE, THE SECRETARY FOR MONETARY AFFAIRS, MR DOUGLAS BLYE SAID TODAY.

SPEAKING AT THE OPENING CEREMONY OF THE 1984 FINANCIAL WORKSHOP ORGANISED BY THE ECONOMICS SOCIETY AT HK UNIVERSITY, MR BLYE SAID THE INTERNATIONAL COMMUNITY OF BANKERS AND BUSINESSMAN WOULD HAVE TO BE ENCOURAGED TO USE HONG KONG AS A FINANCIAL CENTRE, FOR AT THE END OF THE DAY, IF THAT COMMUNITY WAS NOT PREPARED TO DO SO, HONG KONG WOULD CEASE TO FLOURISH.

THE CONDITIONS FOR ENCOURAGEMENT INCLUDED:

*

*

THE MAINTENANCE OF A FINANCIAL SYSTEM GEARED TO FREE MARKET ECONOMIC POLICIES,

AN ENVIRONMENT WHICH WILL PERMIT THE FREE OPERATION OF FINANCIAL BUSINESSES AND THE FREE FLOW OF CAPITAL INTO AND OUT OF HONG KONG,

* A FREELY CONVERTIBLE CURRENCY WITH AN EFFICIENT FOREIGN

EXCHANGE MARKET, AND MOST IMPORTANTLY,

* A WELL-KNOWN AND HIGHLY DEVELOPED SYSTEM OF LAW BUTTRESSED

BY AN INDEPENDENT JUDICIARY WHICH INSPIRES INTERNATIONAL CONFIDENCE.

*THE DRAFT AGREEMENT PROVIDES FOR THESE INGREDIENTS. IT ALSO PROVIDES FOR HONG KONG TO MAINTAIN ITS STATUS AS THE CENTRE OF INTERNATIONAL AND REGIONAL AVIATION AND FOR THE FREEDOM OF TRAVEL AND CORRESPONDENCE TO BE MAINTAINED.

+THERE IS EVERY REASON TO BELIEVE THAT THE TERRITORY WILL MAINTAIN ITS UNRIVALLED NETWORK OF COMMUNICATIONS WITH THE REST OF THE WORLD PHYSICAL AND ELECTRONIC - WHICH ARE ESSENTIAL REQUIREMENTS FOR ANY INTERNATIONAL FINANCIAL CENTRE.

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+SO THE GROUNDWORK HAS BEEN LAID FOR HONG KONG TO CONTINUE AS AN INTERNATIONAL FINANCIAL CENTRE FOR 50 YEARS AFTER 1997, MR BLYE SAID.

HE ALSO TOLD THE STUDENTS AT THE WORKSHOP THAT THE PROSPERITY OF HONG KONG WOULD BE IN THE HANDS OF THE PEOPLE LIKE THEM, BECAUSE ONE OTHER ESSENTIAL INGREDIENT WAS A WELL-TRAINED AND WELL-MOTIVATED WORKFORCE IN THE FINANCIAL SECTOR.

COMMENTING ON THE DESCRIPTION OF HONG KONG AS THE THIRD LARGEST FINANCIAL CENTRE IN THE WORLD, MR BLYE SAID HE WOULD NOT CHALLENGE THE RATING SINCE HE WAS CYNICAL ENOUGH TO REALISE THAT STATISTICS COULD BE USED TO PROVE' OR 'DISPROVE ALMOST ANYTHING. HOWEVER, HE OBSERVED THAT HONG KONG WAS CERTAINLY CLOSE TO THE TOP OF THE FIRST DIVISION OF THE WORLD LEAGUE.

/IN TH