XN000022-1987-11-03 — Page 2

TUESDAY, NOVEMBER 3, 1987

SECURITIES REVIEW COMMITTEE TO BE SET UP--SIR DAVID

THE GOVERNMENT INTENDS TO SET UP A SECURITIES REVIEW COMMITTEE WHICH, IN THE LIGHT OF RECENT EVENTS, WILL EXAMINE THE OPERATION THE FUTURES EXCHANGE AND THE STOCK EXCHANGE AS WELL AS

SYSTEM, THE GOVERNOR, STR DAVID WILSON, SAID THIS

SUPERVISORY (TUESDAY) EVENING,

OF THE

THE CHAIRMANSHIP AND MEMBERS OF THE COMMITTEE, AS WELL AS ITS TERMS OF REFERENCE, WILL BE ANNOUNCED IN THE NEAR FUTURE, SIR DAVID SAID WHEN SPEAKING AT THE 20TH ANNIVERSARY DINNER OF THE HONG KONG PRODUCTIVITY COUNCIL.

REPORT HE

"I SHALL BE ASKING THE COMMITTEE ΤΟ PRODUCE AN EARLY GIVING ADVICE ON HOW WE SHOULD IMPROVE OUR EXISTING ARRANGEMENTS," SAID.

THE SUPERVISORY SYSTEM INVOLVES THE COMMODITIES TRADING COMMISSION, THE SECURITIES COMMISSION AND THE OFFICE OF THE COMMISSIONER FOR SECURITIES AND COMMODITIES TRADING.

SIR DAVID MADE THESE REMARKS AFTER STATING THAT PRODUCTIVITY COULD NOT BE LOOKED AT IN ISOLATION FROM THE ECONOMIC ENVIRONMENT--AND THAT ENVIRONMENT HAD BEEN SHAKEN IN THE

WEEKS.

PAST TWO

"I SHOULD LIKE TO COMMENT ON THESE RECENT, TRAUMATIC EVENTS AND ACTION THAT THE GOVERNMENT HAS TAKEN, AND WILL. BE RESPONSE TO THEM,'

TAKING IN

HE SAID.

HE EMPHASISED THAT THE RECENT SHARP FALL ON THE STOCK MARKET WAS NOT CONFINED TO HONG KONG AND, INDEED, THE FALL HERE WAS A REACTION TO FALLS ELESWHERE IN THE WORLD,

"NOTHING COULD DEMONSTRATE MORE CLEARLY HOW INTER-RELATED THE ECONOMIES OF THE WORLD NOW ARE, WE IN HONG KONG CANNOT BE ISOLATED FROM EVENTS ELSEWHERE. THE GLOBAL MARKET IS A REALITY. SO IS THE 24 HOUR STOCK MARKET. WE ARE A PART OF BOTH.

"

SIR DAVID SAID THERE WAS A LESSON ΤΟ BE LEARNT FROM THESE EVENTS FOR POLICY ON WORLD TRADE. JUST AS THE STOCK MARKETS OF THE WORLD WERE INTER-DEPENDENT, SO WAS THE WORLD TRADING SYSTEM.

"PROTECTIONISM AND ARTIFICIAL BARRIERS TO TRADE WILL DAMAGE ALL PARTS OF THE WORLD TRADING SYSTEM. NOBODY WILL GAIN. THIS 13 THE MESSAGE THAT I HAVE BEEN TRYING TO PUT ACROSS DURING MY

TO THE UNITED STATES.

"

RECENT VISIT

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