XN000022-1985-12-11 — Page 8

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WEDNESDAY, DECEMBER 11, 1985

AS FOR THE SUGGESTION TO ALLOW LIMITED SERVICE BANKS TO OPERATE IN HONG KONG SUBJECT TO MINIMAL SUPERVISION AND REGULATION, HE SAID THERE WAS HEAVY OPPOSITION TO THIS PROPOSAL, BUT THE GOVERNMENT WOULD BE RE-EXAMINING IT.

+BUT I FEEL IT IMPORTANT TO ENSURE THAT THE BANKING SYSTEM IS FIRST ALLOWED PROPER TIME TO DIGEST THE MAJOR NEW LEGISLATION, WHICH WILL SHORTLY BE ANNOUNCED, BEFORE WE SEEK TO INTRODUCE ANY FURTHER CHANGES.

+NOR WILL WE DO SO WITHOUT A GENERAL IF NOT TOTAL CONSENSUS, + SIR JOHN SAID.

EXPRESSING +UNDERSTANDING OF THE FINANCIAL PROBLEMS THAT THE NEW REGIONAL COUNCIL WOULD BE FACING, SIR JOHN SAID HE DID NOT INTEND TO SAY MORE NOW, AS HE WOULD LATER BE ADDRESSING THE RATES QUESTION SEPARATELY IN THE COUNCIL.

'GLOOM OVER DECLINING EXPORTS NOT JUSTIFIED'

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EXCESSIVE GLOOM OVER THE RECENT DECLINE IN HONG KONG'S DOMESTIC EXPORTS WAS NOT JUSTIFIED, THE SECRETARY FOR TRADE AND INDUSTRY, THE HON ERIC HO, SAID TODAY (WEDNESDAY).

SPEAKING AT THE RESUMED DEBATE ON THE GOVERNOR'S OPENING ADDRESS, MR HO POINTED OUT THAT SUCH DECLINE HAD BEEN MEASURED AGAINST THE EXCEPTIONALLY GOOD YEAR OF 1984.

+ INDEED, WHEN COMPARED WITH 1983, WHICH IN ITSELF WAS ALSO A GOOD YEAR WITH SIGNIFICANT GROWTH IN TRADE, THE VALUE OF OUR DOMESTIC EXPORTS FOR THE FIRST NINE MONTHS OF 1985 HAS REGISTERED GROWTH OF OVER 30 PER CENT.+

MR HO SAID THE GOVERNMENT DID HAVE A CONSCIOUS POLICY TO ENCOURAGE THE DEVELOPMENT OF HONG KONG'S TRADE AND INDUSTRY AND THAT IT HAD TAKEN NECESSARY MEASURES TO PROTECT AND PROMOTE OUR ACCESS TO MARKETS.

+FOR THIS ACCESS WE RELY ON OUR RIGHTS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT).+

HE SAID THAT THE GOVERNMENT WOULD CONTINUE TO TAKE SUCH ACTION AS WAS OPEN TO US TO PROTECT OUR RIGHTS IN THE GATT NOW AND IN THE FUTURE.

/IN RESPONSE