XN000022-1987-11-04 — Page 39

1

WEDNESDAY, NOVEMBER 4. 1987

39

GOVERNMENT MUST BE EFFECTIV

GOVERNMENT MUST BE EFFECTIVE; IT DOES

NOT NECESSARILY ALWAYS HAVE TO BE POPULAR, DR THE HON HELMUT SOHMEN SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING IN THE DEBATE ON THE GOVERNOR'S POLICY ADDRESS, DR SOHMEN SAID THE RESCUE PACKAGE FOR THE FUTURES MARKET PUT TOGETHER BY THE GOVERNMENT AND THE PRIVATE SECTOR IN A VERY SHORT TIME WAS NOT ONLY VERY NECESSARY BUT APPEARED TO HAVE HELPED TO ARREST THE PANIC AMONG

INVESTORS.

"THE USE OF THE EXCHANGE FUND IS THIS CONNECTION HAS AGAIN, AND PREDICTABLY, BEEN CRITICISED IN SOME QUARTERS, BUT IT GOVERNMENT COULD NOT EMPLOY THE FUND TO SAFEGUARD THE CONFIDENCE IN OUR MARKETS AND FINANCIA. INSTITUTIONS, BOTH AT HOME AND ABROAD, THEN WE MIGHT AS WELL FORGET AN ASPIRATIONS TO REMAIN A MAJOR INTERNATIONAL FINANCIAL CENTRE," HE SAID.

זיו

HONG KONG

DR SOH IN SAID TO

TRINGS FN PERSPECTIVE, TAXPAYERS HAD SO FAR CONTRIBUTED ABOUT $10.5 BILLION 1N TOTAL ΤΟ DEFENCE SERVICES UNDER THE 1981 DEFENCE COSTS AGRERMENT WITH THE

THE YEAR OF UNITED KINGDOM, AND CLOSE TO $6 BILLION SINCE 1981, SIGNING OF THE JOINT DECLARATION.

THE

ON

DE SALL THE FINANCIAL SECRETARY IN COMING FURTHER TALKS TAIS INSUF MYLLID JUSTIFIABLY ASK AGAINST WHOM TONG KONG WAS BRING DEFENDED, WHEN HE ARGUED FOR A REDUCTION IN HONG KONG'S CONTRIBUTION.

TO MITCH

MAINTAIN

ARE $2 BILLION IN CONTINGENT SUPPORT HONG KZG'S GOOD NAME AND THE SURVIVAL OF A SECTOR OF OUR ECONOMY ON WILETA SO MANY PEOPLE NOW DEPEND?" HE ASKED.

*

"MUCIL DAMAGE HAD ALREADY BEEN DONE BY THE OF THE STOCK MARKET; GOVERNMENT CONTROL.

PRECIPITOUS CLOSURE WAS WISE TO MOVE FAST TN DAMAGE

י,

NOHMEN SAID THE EVENTS OF THE LAST FORTNIGHT HAD BROUGHT THE POINT, OME TO MANY THAT FUTURES AND OPTIONS DID NOT REALLY CREATE FALSE ASSUMPTIONS AND WEALTH; THEY HAD ALSO HIGHLIGHTED A NUMBER OF SHORTCOMINGS IN OUR REGULATORY ARRANGEMENTS AND IN

BEHAVIOUR OF

SOME MARKET PARTICIPANTS.

THE

*TOS! THESE OBVIOUSLY BE PUT RIGHT AS SOON AS POSSIBLE.

AND

L

THOSE CRITICS WHO NOW SO LOUDLY INDULGE IN RECRIMINATION

TO BE CLEVER CUSATIONS SHOULD BEAR IN MIND THAT IT IS KASY

HINDSIGHT:

ONT

HAD RAISED

WOULD BE MORE IMPRESSED WITH THEIR VOICES BEFORE THE EVENT,“

TOFIR

IF POSITION

WITTE THEY

/HE SAID