XN000022-1987-06-16 — Page 4

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TUESDAY, JUNE 16, 1987

F

JACOBS SAID

THE

ΤΟ ENHANCE INVESTORS CONFIDENCE, MR

STRENGTHEN EFFORTS IN GOVERNMENT WAS ATTEMPTING TO

SEVERAL AREAS. PUBLISHED WHITE THEY INCLUDED THE RECENTLY

BILL ON DISCLOSURE OF AND THE SHAREHOLDINGS, THE REVIEW ON LEGISLATIONS ON INSIDER TRADING QUESTION OF B-SHARES.

MR JACOBS SAID THESE REGULATORY EFFORTS WERE BECAUSE THE GOVERNMENT WAS AN INTERVENTION THAN BEFORE.

NECESSARY,

NOT

AND LOW

SIMPLE TAX HE SAID, HONG KONG HAD ALWAYS MAINTAINED

LONG PERIOD OF WHILE MANY COUNTRIES HAD, OVER A

MOVED TIME,

FROM RELATIVELY LOW TAX TO HIGHER TAX AND NOW HAVING LEARNED THEIR LESSONS, HAVE TURNED BACK.

"I TOOK PARTICULAR PLEASURE IN REDUCING, ALBEIT MODESTLY, ALREADY LOW TAX IN MY FIRST BUDGET SEVERAL MONTHS AGO, "HE ADDED.

OUR

AS

"THEY ARE NECESSARY BECAUSE HONG KONG'S FURTHER DEVELOPMENT A FINANCIAL CENTRE DEMANDS THAT WE CONTINUE TO UPGRADE THE STANDARDS AND SEEN TO IN OUR MARKETPLACE; THAT THE RULES OF THE GAME ARE FAIR

CONFIDENCE OF THOSE BE FAIN; THAT THE MARKET WARRANTS THE TRUST AND PARTICIPATING IN IT; AND THAT WE TAKE ACCOUNT OF DEVELOPMENTS IN OTHER MAJOR FINANCIAL CENTRES.

"WE SEE NO FUNDAMENTAL CONFLICT BETWEEN THESE REGULATORY

AND THE

OF EFFORTS AND THE MAINTENANCE

OUR OPEN AND COMPETITIVE BUSINESS ENVIRONMENT, WITH ALL THE ATTENDANT BENEFITS TO THE INVESTOR ECONOMY," HE ADDED.

JOINT DECLARATION HAD

PROVIDED THE AS A FINANCIAL

KNVIRONMENT

IN

MR JACOBS ALSO SAID THE POLITICAL BASIS FOR OPTIMISM ON HONG KONG CONTINUING

ESSENTIAL THE CENTRE, IN THAT IT SOUGHT TO PRESERVE WHICH HONG KONG'S ECONOMY THROVE.

THE

TERRITORY'S

AND

HE WENT ON TO OUTLINE THE FOUR INGREDIENTS OF SUCCESS AS A FINANCIAL CENTRE: LOW TAX, FLEXIBILITY, LEGAL SYSTEM LANGUAGE USEAGE AND GEOGRAPHY.

SECONDLY, HE SAID HONG KONG HAD A SMALL AND ADMINISTRATION, THUS ALLOWING FLEXIBILITY.

TIGHTLY

ORGANISED

"THE RECENT PLACING OF POLICY RESPONSIBILITY FOR ALL FINANCIAL FURTHER ENABLES A SERVICES UNDER THE SECRETARY FOR MONETARY AFFAIRS VIEW TO BE TAKEN THAT

THE INCREASING INTEGRATION IN THE FINANCIAL MARKETPLACE,' MR JACOBS SAID.

M

REFLECTS

COMMUNICATION TO ENSURE EFFECTIVE QUICKLY WHEN THE SITUATION SO DEMANDED, THE RESPONSIBLE RESPECTIVELY FOR

GOVERNMENT

AND THE

ΤΟ ABILITY FOUR POLICY SECRETARIES

MONETARY FINANCE,

AFFAIRS,

MOVE

A

ECONOMIC SERVICES AND TRADE AND INDUSTRY WORKED CLOSELY WITH HIM AS

TEAM, HE ADDED.

/THIRDLY, HONG KONG