XN000022-1985-07-24 — Page 26

WEDNESDAY, JULY 24, 1985

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+TEACHING MATERIALS OF A SIMILAR NATURE HAVE BEEN WELL RECEIVED BY PRIMARY AND SECONDARY SCHOOL TEACHERS IN THE PAST YEAR, HE SAID.

IN THE CORRUPTION PREVENTION FIELD, THE MOST SIGNIFICANT DEVELOPMENT HAD BEEN THE FORMATION OF CORRUPTION PREVENTION GROUPS WITHIN DEPARTMENTS.

+THE OBJECTIVE WAS TO INVOLVE GOVERNMENT DEPARTMENTS MORE DIRECTLY IN IDENTIFYING AREAS OF THEIR OWN ACTIVITIES WHICH MAY PROVE WHERE CORRUPTION OPPORTUNITIES MAY OCCUR.

+ASSOCIATED WITH THE SETTING UP OF THESE GROUPS IS A TREND THAT MORE AND MORE ASSIGNMENT WORK HAS BEEN CARRIED OUT AT THE SPECIFIC REQUEST OF GOVERNMENT DEPARTMENTS AND PUBLIC BODIES,+ SIR ROGER SAID.

BANK TRYING HARD TO RECOVER MONEY *****

THE ULTIMATE COST OF THE ACQUISITION OF THE HANG LUNG BANK WILL DEPEND ON THE PRICE WHICH THE GOVERNMENT IS ABLE TO OBTAIN WHEN THE BANK IS RETURNED TO THE PRIVATE SECTOR, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY.

+THIS PRICE WILL IN TURN DEPEND TO A SUBSTANTIAL DEGREE ON THE SUCCESS OF THE BANK IN RECOVERING MONEY OWED TO IT, HE SAID. +THE BANK IS STRENUOUSLY CONTINUING ITS EFFORTS IN THIS AREA. +

MR JACOBS WAS REPLYING TO A QUESTION BY THE HON LYDIA DUNN. HE SAID THE GOVERNMENT'S PLANS FOR THE BANK WAS STILL TO RETURN IT TO THE PRIVATE SECTOR.

+AS TO THE CAUSES OF THE BANK'S TROUBLES, ALL I CAN SAFELY SAY THIS AFTERNOON IS THAT THERE WAS A LARGE ELEMENT OF MISMANAGEMENT IN THAT THE BANK LENT IMPRUDENTLY.

+THE LESSONS LEARNT FROM THE HANG LUNG EXERCISE FORM PART OF THE INPUT TO THE CURRENT REVIEW OF PRUDENTIAL SUPERVISION.

+WE HOPE TO PRESENT THE RESULTS OF THAT REVIEW TO THE BANKING AND DEPOSIT-TAKING ADVISORY COMMITTEES IN EARLY SEPTEMBER. DEPENDING UPON THE ADVICE OF THE TWO COMMITTEES, WE EXPECT BEFORE THE END OF THE YEAR TO BE IN A POSITION TO DEVELOP FURTHER THE FUTURE SHAPE AND SCALE OF OUR REGULATORY SYSTEM,+ HE SAID.

MR JACOBS ALSO THANKED THE PRESENT HANG LUNG BANK BOARD, ITS MANAGEMENT AND STAFF FOR ALL THEY HAD DONE TO IMPROVE THE PROSPECTS OF THE BANK, THEREBY ADVANCING THE DATE WHEN THE BANK COULD BE RETURNED TO THE PRIVATE SECTOR.

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