XN000022-1987-11-04 — Page 36

WEDNESDAY, NOVEMBER 4, 1987

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MR LI SAID HONG KONG MUST MAINTAIN ITS COMPETITIVE EDGE AS A FINANCIAL CENTRE AND THAT BETTER CO-ORDINATION OF MEASURES BETWEEN THE TAXATION AND BANKING SUPERVISORY AUTHORITIES WAS VITAL.

"TAX CONCESSIONS ON HONG KONG DOLLAR DEBT PAPER ARE A CASE IN POINT," HR SAID. "BY SCRAPPING THE WITHHOLDING TAX ON HONG KONG DOLLAR DEBT INSTRUMENTS SO AS TO REVIVE THE CAPITAL MARKET, HONG KONG'S ATTRACTIVENESS AS AN INTERNATIONAL FINANCIAL CENTRE COULD BE MAINTAINED."

HE ALSO SAID THE RECENT DRASTIC FALL IN THE SECURITIES MARKET APPEARED TO HAVE HAD ONLY A MINIMAL EFFECT ON THE BANKING SECTOR.

"WHILE THE SECRETARY FOR MONETARY AFFAIRS HAS DONE AN EXCELLENT JOB AS CHAIRMAN OF BANKS BAILED OUT BY PUBLIC FUNDS, IT IS HIGH TIME FOR THE GOVERNMENT TO RESOLVE THE CONFLICT OF INTEREST THAT THEY HAVE CREATED BY HAVING THE SAME PERSON ACT BOTH AS INDUSTRY REGULATOR AND AT THE SAME TIME AS THE CHAIRMAN OF THEOR COMMERCIAL BANKS," HE WENT ON.

"THE RECENT SALE OF HONG KONG INDUSTRIAL AND COMMERCIAL BANK IS A GOOD PRECEDENT FOR PRIVATISATION OF GOVERNMENT CONTROLLED BANKS.

MR LI SUGGESTED THAT GOVERNMENT SHOULD MAKE GREATER EFFORTS IN RETURNING THE OTHER TWO BANKS, OVERSEAS TRUST BANK AND HANG LUNG BANK, TO PROFITABLE OPERATION AND DISPOSING OF THEM IN THE MARKET.

SCIENCE COMMITTEE WILL MEET GROWING NEED

THE GOVERNMENT'S DECISION TO SET UP A COMMITTEE ON SCIENCE TECHNOLOGY WILL EFFICIENTLY MEET A GROWING NEED IN HONG

POON CHUNG-KHONG

LEGISLATIVE

SAID IN THE

THE HON (WEDNESDAY).

AND

KONG, PROF COUNCIL TODAY

SAID THE 199UES

SPEAKING DURING THE POLICY DEBATE, PROF POON COMMITTEE WOULD SERVE PRIMARILY AS A THINK-TANK FOR SCIENTIFIC ON BEHALF OF THE GOVERNMENT, TO IDENTIFY PROBLEM AREAS OPPORTUNITIES FOR DEVELOPMENT WITHIN HONG KONG.

AND HIGHLIGHT

WAS

HE SAID ONE IMPORTANT PURPOSE WHICH THE COMMITTEE WOULD THE COMPILATION OF A LIST OF LOCAL PERSONNEL SCIENTIFIC AND TECHNOLOGY FIELDS IN THE HONG WAY A SWIFT AND EFFICIENT LINK WOULD BE

GOVERNMENT AND APPROPRIATE EXPERTS.

SERVE

IN SPRCIFIC IN THIS BETWEEN THE

KONG CONTEXT. ESTABLISHED

/ANOTHER AREA

F1