XN000022-1985-11-27 — Page 3

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WEDNESDAY, NOVEMBER 27, 1985

+WHAT ARE WE DOING NOW TO PREPARE THE GROUND FOR THE DIFFICULT NEGOTIATIONS REQUIRED BEFORE THE FUTURE OF THE MULTI-FIBRE ARRANGEMENTS COMES UNDER FORMAL REVIEW NEXT YEAR?+ SHE ASKED.

MISS DUNN SAID THE TASK OF INFLUENCING OPINION IN OUR MARKETS WOULD NOT BE TOO COSTLY BECAUSE THE NUMBER OF PEOPLE INVOLVED IN THE VITAL DECISIONS WAS QUITE SMALL AND THEY WOULD NOT COST MILLIONS TO GET AT.

+WE NEED TO STEP UP SHARPLY OUR EFFORTS TO KEEP ABREAST OF POLITICAL, SOCIAL AND ECONOMIC DEVELOPMENTS IN OUR PRINCIPAL MARKETS IN ORDER TO BE ABLE TO CONVINCE THOSE WHO TAKE THE DECISIONS OF THE MERITS OF RECOGNISING AND OBSERVING OUR GATT RIGHTS, SHE SAID.

SHE ADDED THAT OUR STANDING IN THE BATTLE FOR UNDERSTANDING WOULD BE MUCH STRENGTHENED WHEN OUR LONG TERM POSITION IN THE GATT WAS SETTLED AND SHE SUGGESTED THAT THIS SHOULD BE PUT BEYOND DOUBT AS SOON AS POSSIBLE.

SHE SAID AFTER THE COMPLETION OF NEGOTIATIONS IN THE JOINT LIAISON GROUP IT WOULD STILL BE NECESSARY TO SECURE FORMAL GATT ACCEPTANCE OF, AND RECOGNITION FOR, WHATEVER IT WAS THAT BRITAIN AND CHINA AGREED UPON.

SHE HOPED THAT THIS IMPORTANT MATTER WOULD BE SETTLED DEF IN ITIVELY VERY SOON.

TURNING TO HER THIRD PRIORITY WHICH CONCERNED HONG KONG'S INTERNATIONAL REPUTATION, MISS DUNN SAID WE WERE GETTING A REPUTATION FOR EXPENSIVE AND SHODDY FINANCIAL TRANSACTIONS.

THE IMPROVEMENT OF THE LEGAL AND INSTITUTIONAL FRAMEWORK IN WHICH THE FINANCIAL AND ALLIED SERVICE INDUSTRIES OPERATE WAS A COMPLEX MATTER BUT SHE SAID WE MUST BE SEEN TO BE DOING OUR BEST TO PUT OUR HOUSE IN ORDER AS A MATTER OF URGENCY.

+WE CANNOT EXPECT REPUTABLE PEOPLE TO INVEST HERE UNLESS THEY CAN HAVE CONFIDENCE IN OUR REGULATORY SYSTEMS, + SHE SAID.

MISS DUNN ALSO SAID THE SERVICE OFFERED BY THE CORRUPTION PREVENTION ADVISORY SERVICES GROUP SHOULD BE MARKETED MUCH MORE WIDELY THAN JUST HAVING IT DRAWN TO THE ATTENTION OF GOVERNMENT- LISTED CONTRACTORS AND SUBVENTED ORGANISATIONS+,

+ IT IS A MAJOR TASK TO CONVINCE MANAGERS THAT EVEN IF THEY HAVE NO CORRUPTION IN THEIR OWN ORGANISATION THEY SHOULD STILL LOOK AT THE IR PROCEDURES TO SEE IF THEY CAN BE IMPROVED.

+THESE SERVICES SHOULD NOT ONLY BE AVAILABLE TO EVERY FIRM IN BUSINESS BUT EVERY FIRM IN BUSINESS SHOULD KNOW ABOUT THEM,+ SHE SAID.

+ THE GROWTH IN COMMERCIAL CRIME AND IN PRIVATE SECTOR CORRUPTION REPORTS SPELL DANGER TO EVERYONE IN BUSINESS AND, IF NOT CHECKED, FOR THE WHOLE OF OUR SOCIETY, SHE WARNED.

MISS DUNN