XN000022-1985-06-07 — Page 11

10

1

RIDA, JUNE 7, 1985

NOW, SIR I'M CONCLUDING MY SPEECH, GIVEN IMPROMPTU: IF I'VE LEFT OUT ANY POINTS I'M SORRY, I WOULD LIKE TO SAY, IN SUMMING UP, THAT THIS COURSE OF ACTION WHICH THE GOVERNMENT, THE EXECUTIVE COUNCIL AND THIS CHAMBER ITSELF, IS ONE THAT WE'VE REACHED WITH A GREAT DEAL OF DIFFICULTY AFTER VERY CONSIDERABLE HEART-SEARCHING AND A VERY REAL BALANCING OF THE RISKS. WHETHER WE ARE RIGHT OR NOT, I DO NOT KNOW. NO ONE IN THIS CHAMBER KNOWS. BUT I DO KNOW THAT, FOR MY PART, I WOULD NOT HAVE ACCEPTED THE RISKS FOR HONG KONG OF TAKING ANOTHER COURSE.+

THE BILL THEN WENT THROUGH THE COMMITTEE STAGE AND THIRD READING AND WAS PASSED INTO LAW.

DECISION TO TAKE OVER OTB THE RIGHT MOVE

****

THE DECISION BY THE GOVERNMENT TO TAKE OVER THE OVERSEAS TRUST BANK LIMITED WAS THE RIGHT ONE IN ALL THE CIRCUMSTANCES, THE DEPUTY TO THE GOVERNOR, SIR PHILIP HADDON-CAVE, SAID THIS (FRIDAY) EVENING.

SPEAKING TO REPORTERS AFTER THE LEGISLATIVE COUNCIL MEETING DURING WHICH THE OVERSEAS TRUST BANK (ACQUISITION) BILL 1985 WAS PASSED, SIR PHILIP SAID IT WAS NOT AN EASY DECISION TO TAKE.

+BUT THE COURSE HAS BEEN ADOPTED, I AM SURE IT IS THE RIGHT ONE IN THE INTEREST OF THE BANKING INDUSTRY AS A WHOLE, AND HAVING REGARD TO THE FACT THAT HONG KONG IS AN INTERNATIONAL FINANCIAL CENTRE, + HE SAID.

+REMEMBER THE OTB IS AN INTERNATIONAL BANK. IT HAS 43 BRANCHES IN HONG KONG BUT FIVE OR SIX BRANCHES OVERSEAS. SO WE HAVE AN OBLIGATION BEYOND HONG KONG'S BOUNDARIES.+

ASKED WHETHER REFORMS WERE IN HAND TO IMPROVE THE SYSTEM OF SUPERVISION, SIR PHILIP POINTED OUT THAT REFORMS WERE IN HAND ALL THE TIMÉ.

+WE LIVE IN A DYNAMIC WORLD. THE BANKING ORDINANCE HAS BEEN AMENDED MANY, MANY TIMES SINCE 1964.

+CIRCUMSTANCES CHANGE AND NEW REQUIREMENTS EMERGE, SO WE WILL RESPOND WITH AMENDMENTS TO THE LAW. THIS IS THE PROCESS, HE SAID.

SIR PHILIP ADDED THAT A GOOD SYSTEM OF PRUDENTIAL SUPERVISION WOULD ENSURE THAT THE BANKING INDUSTRY WAS OPERATED IN ACCORDANCE WITH SOUND BANKING PRINCIPLES.

/+WE HAVE