XN000022-1987-11-04 — Page 32

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WEDNESDAY, NOVEMBER 4, 1987

"WE SIMPLY MUST RECOGNISE THAT IF WE ARE TO BK PART OF AN INTERNATIONAL SYSTEM THEN WE MUST PLAY

BY INTERNATIONAL RULES, RE

SAID.

HE SAID THE PROPOSED COMMITTEE OF INQUIRY WHICH WAS TO EXAMINE THE NEED FOR BETTER OPERATION AND REGULATION OF THE EXCHANGES SHOULD BE ASKED TO GET ON WITH ITS WORK URGENTLY AND WITH THF NECESSARY TERMS OF REFERENCE AND POWERS TO CARRY OUT A ROOT AND BRANCIL STUDY.

TO FIND THE NERD

"IT IS INTOLERABLE THAT WE SHOULD CONTINUE FOR IMPROVEMENTS ONLY WHEN DISASTERS OCCUR," HE SAID.

HE ADDED THAT IN VIEW OF RECENT EVENTS, HE WOULD ALSO SUGGEST THAT A RE-EXAMINATION BE CARRIED OUT OF THE TRIE BENEFITS FOR HONG KONG ARISING OUT OF THE OPERATION OF AN INDEX FUTURES FXCHANGE.

SAID TOP FUTURES EXCHANGE WAS CLEARLY AN INSTRUMENT REQUIRING THE PARTICIPATION OF SPECULATORS IN THE FULL SENSE OF TIEN WORD.

"THAT BEING SO, I HAVE NO DOUBT THAT TUF RULES APPLYING TO THE EXCHANGE AND PARTICULARLY TO THE ADMISSION OK BROKERS, AND TO LIQUIDITY AND MARGIN REQUIRMENTS MUST BE PRUDENT AND CAPABLE OF BEING APPLIED, HE SAID.

HE SAID HE FOUND IT FXTRAORDINARY THAT AN FXCHANGF WHICH HAD SO FAR SEEN A VERY LIMITED 1.IFE SHOULD ALREADY HAVE REQUIRED THE GOVERNMENT TO BAIL IT OUT WITH A POSSIBLE COMMITMENT OP ONF TO TWO BILLION DOLLARS PROVIDED FROM PUBLIC FUNDS,

וי

"WHY SHOULD THE TAXPAYER FOOT THIS PARTICULAR BILL WHAT REAL BENEFIT HAS THIS FUTURES EXCHANGE PROVIDED FOR TUE ECONOMY AND CAN THIS BE QUANTIFIED?" HE ASKED,

I

BY

ן זיני

SAID THAT A MAJOR REPUTABLE INTERNATIONAL HONG KONG ECONOMY, IT'S

TURNING TO THE ECONOMY MR CLYDESDALE SHOULD BE CARRIED OUT, PREFERABLY CONSULTANTS, ON THE PRESENT POSITION OF THE STRENGTHS AND WEAKNESSES, ITS POTENTIAL FOR GROWTH IN VARIOUS SECTORS, THE PROBLEMS IT FACED AND PERHAPS SOME OF THE OVERCOME THE PROBLEMS.

SOLUTIONS

WILICH

MEGHIT

HE NOTED THAT A STUDY ON THE SCALE HJ. MENTIONED HAP BKEN PROPOSED BY A GROUP OF BUSINESSMEN AND INDUSTRIALISTS, SUPPORTED BY THE HONG KONG GENERAL CHAMBER OF COMMERCI AND *THE TONG LONG PRODUCTIVITY COUNCIL..

A DETAILED PROPOSAL BAD BEEN OBTAINED FROM ONE OF THA WORLD'S LARGEST INTERNATIONAL CONSULTANCY ORGANISATIONS AND IT WAS CLEAR THAT, GIVEN GOVERNMENT CONCURRENCE THE DETAILED STUD COULD BEGIN SOON. THE COST WOULD BE PROVIDED FROM THE PRIVATE SF TOR HT GOVERNMENT SUPPORT AND ENCOURAGEMENT WAS CLEARLY MECESSARY.

·

/HE ADDED