XN000022-1986-11-26 — Page 31

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WEDNESDAY, NOVEMBER 26, 1986

HE ACCEPTED THAT ANY OVER-REGULATION MIGHT AFFECT HONG KONG'S ATTRACTIVENESS AS AN INTERNATIONAL FINANCIAL CENTRE, BUT POINTED OUT THAT ADDITIONAL REGULATION WAS OFTEN THE RESPONSE TO ABUSE.

+ LET THOSE IN THE MARKETPLACE REALISE THAT AT THE END OF THE DAY A GOOD REPUTATION BASED ON PROBITY IS A MOST VALUABLE ASSET, HE SAID.

AS TO THE QUESTION OF SPECIAL TREATMENT IN RELATION TO THE CAPITAL ADEQUACY RATIO REQUIREMENTS FOR DEPOSIT-TAKING COMPANIES ENGAGING MAINLY IN OFFSHORE BUSINESSES, HE SAID THERE WOULD CONTINUE TO BE CONSULTATION WITH THOSE INVOLVED. IN ANY EVENT, THE REQUIREMENT WOULD NOT COME INTO EFFECT UNTIL SOME TIME IN 1988.

REFERRING TO SUPERVISORY ARRANGEMENTS FOR MONEY LENDERS, MR JACOBS SAID THE MONEY LENDERS ORDINANCE WAS NOT DESIGNED FOR LENDERS OPERATING IN TODAY'S SOPHISTICATED FINANCIAL MARKETS.

THE ADMINISTRATION HAD BEEN CARRYING OUT A GENERAL REVIEW OF THE ORDINANCE AND A LARGE NUMBER OF AMENDMENTS WERE ENVISAGED. SOME OF THESE WOULD HAVE THE EFFECT OF EXCLUDING SOPHISTICATED LONDING ACTIVITIES FROM SOME OR ALL OF THE PROVISIONS OF THE ORDINANCE.

CONCLUDING HIS SPEECH, MR JACOBS SAID THE FAR-REACHING NATURE OF THE GOVERNMENT'S LONG-TERM PLANS AND PROGRAMMES DEMONSTRATED BEYOND ANY QUESTION ITS DETERMINATION TO GOVERN FULLY AND EFFECTIVELY.

HE SAID: +WE WILL PROVIDE THE FRAMEWORK NECESSARY TO ENABLE THE ECONOMY TO GROW. THAT GROWTH WILL IN ITS TURN ALLOW US TO IMPROVE OUR SERVICES TO THE SICK, THE ELDERLY, THE POOR AND THE DISABLED.

*WE WILL BE ABLE TO BUILD NEW AND IMPROVED EDUCATIONAL FACILITIES AND CONTINUE WITH OUR HOUSING PROGRAMME, WHICH IN MANY WAYS STANDS COMPARISON WITH ANY IN THE WORLD,+

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