XN000022-1986-01-22 — Page 15

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WEDNESDAY, JANUARY 22, 1986

HE NOTED THAT NEARLY ALL HONG KONG'S FLOURISHING INDUSTRIAL SECTOR HAD BEEN CREATED SINCE 1949 AND THE MAJOR SOURCE OF FUNDS HAD BEEN BANK LOANS.

HE SAID: +1 AM UNAWARE OF ANY EVIDENCE THAT INDUSTRIALISTS WITH SOUND BUSINESS PROPOSITIONS HAVE BEEN OR ARE NOW UNABLE TO GET APPROPRIATE LOANS,

+ THE BANKS INDEED HAVE ALWAYS BEEN VERY HELPFUL, FREQUENTLY LENDING MONEY BASED ON ASSESSMENT OF PERSONAL CHARACTER RATHER THAN FULL COLLATERAL.

*INDEED, I KNOW OF MANY INDUSTRIALISTS WHO HAVE SECURED LOANS BUT WHO SHOULD NOT HAVE.+

SIR JOHN NOTED THAT APART FROM THE NUMEROUS DEPOSIT-TAK ING COMPANIES AND THE POSSIBILITY OF SECURING OFFSHORE LOANS, THERE WERE NOW 143 HIGHLY COMPETITIVE BANKS IN HONG KONG AND THERE WAS AMPLE LIQUIDITY.

HE ADDED THAT THE PRIME RATE HERE WAS LOWER THAN IN THE US, CANADA OR UK AND THE STOCK EXCHANGES, LEASING AND THE NEW DEVELOPMENT OF VENTURE CAPITAL FUNDS INDICATED OTHER POSSIBLE ALTERNATIVE ARRANGEMENTS.

+1 SEE NO GOOD REASON TO SUPPORT GOVERNMENT INVOLVEMENT IN A NEW FORM OF VENTURE BANKING WHICH WOULD REQUIRE US TO COMPETE WITH THE PRIVATE SECTOR.

+IT WOULD INCIDENTALLY BE A DISASTROUS VENTURE FOR THE HANG LUNG OR OVERSEAS TRUST BANKS, WHICH WE SEEK TO RETURN TO THE PRIVATE SECTOR AS SOON AS POSSIBLE AT THE HIGHEST POSSIBLE PRICE,+ SIR JOHN SAID.

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BOUNDARY RECTIFICATION ORDINANCE BEING CONSIDERED

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THE GOVERNMENT IS CONSIDERING THE NEED FOR A BOUNDARY RECTIFICATION ORDINANCE, THE LEGISLATIVE COUNCIL WAS TOLD TODAY (WEDNESDAY) BY THE SECRETARY FOR LANDS AND WORKS, THE HON JOHN TODD.

THIS WAS TO REMEDY DEFICIENCIES IN THE PRESENT SYSTEM OF BOUNDARY DEFINITION OF LAND FOR TITLE PURPOSES, HE SAID IN ANSWER TO A QUESTION FROM THE HON CHENG HON-KWAN.

/MR TODD