XN000022-1987-10-22 — Page 28

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THURSDAY, OCTOBER 22, 1987

THE GOVERNOR, SIR DAVID WILSON, ANSWERED A NUMBER OF QUESTIONS FOLLOWING HIS ADDRESS TO THE NATIONAL PRESS CLUB IN WASHINGTON ON WEDNESDAY (U.S. TIME).

THE QUESTION AND ANSWER SESSION WAS CHAIRED BY THE CLUB PRESIDENT, MR ANDY MOLLISON, CHIEF POLITICAL CORRESPONDENT

COX NEWSPAPERS.

FOR

A TRANSCRIPT OF THE QUESTIONS AND ANSWERS FOLLOWS:

GOT

FOR

MR MOLLISON: THE FIRST COUPLE OF QUESTIONS THAT WE'VE CONCERN WHAT LED TO HONG KONG'S DECISION TO CLOSE ITS EXCHANGE THE WEEK, AND THIS QUESTIONER SUGGESTS THAT THE CLOSING COULD LEAD ΤΟ A PANIC WHEN THE MARKET REOPENS. AND ANOTHER QUESTIONER WANTS TO KNOW, "WOULD YOU KNOW WHEN THE HONG KONG EXCHANGE WOULD REOPEN?"

KONG HONG THE

SIR DAVID: THE FIRST THING I'D LIKE TO SAY IS THE HONG STOCK EXCHANGE IS PRIVATELY MANAGED. LIKE MANY THINGS IN KONG, IT IS NOT UNDER GOVERNMENT CONTROL. THE DECISION TO CLOSE MARKET WAS TAKEN BY THE COUNCIL OF THE STOCK EXCHANGE, AND IT'S TOTALLY WITHIN ITS POWER TO DO IT.

IT HAS SAID, AT THE MOMENT, THAT THE MARKET WILL REMAIN CLOSED FOR THE REST OF THE WEEK. THE REASON FOR CLOSE IS THAT THEY GOT OVERWHELMED WITH PAPERWORK, WHICH WAS GOING IN TWO DIRECTIONS. LAST WEEK'S PAPERWORK WAS A MASSIVE BULL MARKET. MONDAY WAS A MASSIVE BRAR MARKET.

THE EXCHANGE IN HONG KONG, IN ITS PRESENT FORM, THAT IS, A UNIFIED EXCHANGE, MADE UP OUT OF FOUR PREVIOUS EXCHANGES, HAS ONLY BEEN GOING IN ITS PRESENT FORM FOR A YEAR. IT HAS CLEARLY BEEN HAVING TROUBLE WITH SOME OF ITS PAPERWORK ON SETTLEMENT. THAT IS OBVIOUSLY SOMETHING WHICH IS GOING TO HAVE TO BE REMEDIED. I KNOW THAT THAT SOMETHING WHICH THE STOCK EXCHANGE HAS ALREADY BEEN LOOKING INTO.

IS

PRECISELY

I CANNOT PREDICT ON BEHALF OF THE STOCK EXCHANGE WHEN IT WILL REOPEN, BECAUSE THAT'S ENTIRELY WITHIN THEIR HANDS. I KNOW THAT THEIR COMMITTEE IS MEETING TOMORROW, AND I KNOW ALSO THAT THE FINANCIAL SECRETARY OF HONG KONG IS KEEPING IN CLOSE TOUCH THE EXCHANGE ABOUT ITS PLANS.

WITH

WITH

BILL

MR MOLLISON: DURING THIS TRIP YOU HAVE BEEN MEETING CONGRESSIONAL MEMBERS INVOLVED IN THE HOUSE-SENATE TRADE CONFERENCE. THAT NARROWS THE FIELD TO 197. DO YOU SENSE FROM THESE MEETINGS THAT THESE MEMBERS OF CONGRESS UNDERSTAND AND APPRECIATE THE DIFFERENCE BETWEEN A HONG KONG WHICH IS FREE OF UNFAIR TRADE BARRIERS, AND OTHER COUNTRIES SUCH AS JAPAN, WHO DENY MARKET ACCESS TO FOREIGN GOODS?

SIR DAVID: I'VE BEEN MEETING A LARGE NUMBER OF PEOPLE ON THE HILL AND MEMBERS OF THE ADMINISTRATION, AND WE'VE BEEN TALKING ABOUT THESE ISSUES, AMONGST OTHERS.

/I CALLED