XN000022-1986-06-06 — Page 2

FRIDAY, JUNE 6, 1986

FINANCIAL SECTOR FUNDAMENTALLY SOUND

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CS

THE FINANCIAL SECTOR IN HONG KONG IS FUNDAMENTALLY AND BASICALLY SOUND AND THE CHIEF SECRETARY, SIR DAVID AKERS-JONES, SAID TODAY (FRIDAY) THAT HE WOULD NOT WANT TO SPECULATE ON STATEMENTS OR RUMOURS THAT ANOTHER BANK WAS IN TROUBLE.

HE WAS SPEAKING TO REPORTERS AFTER ATTENDING THE GOLDEN JUBILEE COCKTAIL RECEPTION OF THE BOYS' AND GIRLS' CLUBS ASSOCIATION.

ASKED ABOUT THE PROGRESS OF THE PROPOSED OMBUDSMAN SCHEME, SIR DAVID SAID A PUBLIC STATEMENT ON THE SUBJECT WOULD BE MADE BEFORE LONG.

HE SAID DISCUSSIONS ON THE PROPOSED SCHEME HAD BEEN GOING ON WITHIN THE GOVERNMENT AND UMELCO IN RECENT MONTHS, SO WERE DISCUSSIONS BETWEEN THE TWO PARTIES.

SIR DAVID SAID THE PAPER ON THE SUBJECT WAS IN A VERY ADVANCED STAGE OF PREPARATION.

HE NOTED THAT THE PROPOSAL HAD CERTAINLY NOT BEEN PUT ON ONE SIDE. BUT IT DOES REQUIRE CONSIDERATION BY THE EXECUTIVE COUNCIL IN DUE COURSE, AND PUBLIC OPINIONS WILL BE REQUIRED ON ANY PROPOSALS THAT ARE MADE.

WHEN ASKED ABOUT THE COMPENSATION SCHEME FOR EXPATRIATE CIVIL SERVANTS WHO WOULD BE AFFECTED BY THE LOCALISATION POLICY, SIR DAVID SAID THE GOVERNMENT WOULD MAKE AN ANNOUNCEMENT ON THAT SCHEME WHEN IT WAS PREPARED TO DO SO.

ON REPORTS THAT HONG KONG'S BORDER MIGHT BE EXTENDED INTO CHINA, SIR DAVID SAID THE QUESTIONS OF THE INTEGRITY OF HONG KONG AND THE SPECIAL ADMINISTRATIVE REGION AS WELL AS THE IMPORTANCE { OF HONG KONG AS A SEPARATE CUSTOMS TERRITORY WERE MENTIONED IN THE JOINT DECLARATION, AND HE HAD NOTHING TO ADD TO THAT.

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