XN000022-1985-06-26 — Page 33

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WEDNESDAY, JUNE 26, 1985

HE ADDED THAT THE REVIEW WOULD TAKE INTO ACCOUNT ANY LESSONS TO BE LEARNT FROM RECENT EVENTS AND, IN PARTICULAR, POINTS MADE BY LEGISLATIVE COUNCIL MEMBERS DURING THE DEBATE ON JUNE 7.

MR JACOBS ALSO RECALLED THAT SIR JOHN BREMRIDGE HAD INFORMED THE COUNCIL ON FEBRUARY 27, WHEN MOVING THE APPROPRIATION BILL 1985, THAT A REVIEW OF PRUDENTIAL SUPERVISION OF BANKING IN HONG KONG WAS BEING CARRIED OUT FOLLOWING THE EXAMINATION OF A REPORT BY A TEAM FROM THE BANK OF ENGLAND CONCERNING THE EXISTING SYSTEM.

IN REPLY TO ANOTHER QUESTION BY MR SO, MR JACOBS SAID THAT ARGUMENTS FOR AND AGAINST THE ESTABLISHMENT OF A DEPOSIT INSURANCE SCHEME WERE BEING STUDIED YET AGAIN.

AND THE MATTER WOULD BE DISCUSSED WITH THE BANKING ADVISORY COMMITTEE AND THE DEPOSIT-TAKING ADVISORY COMMITTEE LATER THIS YEAR, HE ADDED.

MR JACOBS RECALLED THAT THE SUBJECT OF SUCH A DEPOSIT INSURANCE SCHEME HAD BEEN AIRED ON A NUMBER OF OCCASIONS.

THE MATTER HAD ALSO BEEN BROUGHT UP BY SIR JOHN BREMRIDGE DURING THE PASSAGE OF THE OVERSEAS TRUST BANK (ACQUISITION) ORDINANCE ON JUNE 7, WHEN HE POINTED OUT THAT THERE WERE ARGUMENTS BOTH FOR AND AGAINST SUCH A SCHEME, MR JACOBS SAID.

STEPS BEING TAKEN AGAINST PROTECTIONISM

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HONG KONG IS CONCENTRATING ITS EFFORTS ON ATTEMPTS TO REDUCE SUPPORT FOR THE THURMOND-JENKINS ILL, THE MOST IMMEDIATE THREAT TO OUR TRADE, THE SECRETARY FOR TRADE AND INDUSTRY, THE HON HARNAM GREWAL, SAID TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY THE HON STEPHEN CHEONG, HE SAID THAT TWO STEPS WERE BEING TAKEN TO COUNTER THE GROWING TIDE OF PROTECTIONISM IN THE UNITED STATES.

FIRST, HONG KONG SOUGHT ITH SOME SUCCESS TO ENCOURAGE AND LIAISE WITH DOMESTIC U.S. INTERESTS WHICH WOULD BE AFFECTED BY INCREASED U.S. PROTECTIONISM THROUGH REDUCED IMPORTS OR THROUGH REDUCED EXPORT OPPORTUNITIES MANY COUNTRIES AFFECTED BY SUCH MEASURES.

+A MAJOR EFFORT 13 22INGOUNTED ACTIVATE MULTINATIONAL CORPORATIONS THROUGH THE IR LANCHE, ITONG KONG BY DRAWING ATTENTION TO THE DAMAGING LOTS OF The BILL,+ MR GREWAL SAID.

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