XN000022-1987-11-04 — Page 40

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WEDNESDAY, NOVEMBER 4, 1987

HE SAID IT WAS EVIDENT THAT THE RAPID GROWTH IN OUR FINANCIAL MARKETS, AND IN NEW INSTITUTIONS AND NEW INSTRUMENTS HAD ALREADY STRETCHED THE REGULATORY MACHINERY, WITH THE OFFICE OF COMMISSIONER FOR SECURITIES SUFFICIENTLY UNDERSTAFFED TO BE UNABLE AVOID DELAYS IN DEALING EVEN WITH ROUTINE TASKS.

THE

ΤΟ

ENSURING

HE SAID WE COULD NOT GO ON LEGISLATING WITHOUT FIRST THAT EXPERIENCED MANPOWER WAS IN PLACE TO COPE WITH THE RESULTING ADDITIONAL DEMANDS MADE ON THE ENFORCEMENT AGENCIES.

"WE SHOULD ALSO NOT

OVER-REACT AND ABANDON OUR BASIC PHILOSOPHY OF SELF-REGULATION; IT IS STILL THE MORE EFFICIENT AND ULTIMATELY MORE EFFECTIVE WAY, HE SAID.

"HOWEVER, WE SHOULD CAREFULLY MONITOR AND ASSESS THE ACTIONS OF MARKET PARTICIPANTS IN TIMES OF CRISIS, AND RECORD AND REMEMBER THOSE WHOSE PERFORMANCE LEFT SOMETHING TO BE DESIRED, ESPECIALLY WHEN CALLED UPON TO HELP WITH THE SUPPORT PACKAGE.

"OVER THE LONGER RUN HONG KONG WILL BE BETTER OFF WITHOUT THOSE WHO MAXIMISE BENEFITS FROM PARTICIPATING ONLY IN GOOD TIMES BUT HAVE LITTLE SENSE OF RESPONSIBILITY WHEN THE GOING GETS TOUGH.

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DR SOHMEN SAID THE DRAMATIC FALL IN THE STOCK EXCHANGES AROUND THE WORLD AND CONSEQUENTIAL EFFECTS ON INVESTOR CONFIDENCE PROBABLY WOULD HERALD A PERIOD OF VOLATILITY

IN THE FINANCIAL MARKETS. AND

PROJECTED

WOULD UNDOUBTEDLY HAVE A DOWNWARD IMPACT ON POR CONSUMPTION, GROSS DOMESTIC PRODUCT, AND EXPORTS.

GROWTH RATES

SOUND ECONOMIC THE PAST WEEKS

HE SAID ALTHOUGH HONG KONG CURRENTLY ENJOYED A PERFORMANCE, UNDERPINNED BY STRONG EXPORT FIGURES, COULD ONLY REINFORCE THE JUSTIFICATION FOR CONTINUE PRUDENCE IN THE MANAGEMENT OF PUBLIC FINANCES.

THE

THE

ON RELATED ISSUES, DR SOHMEN SAID HE WAS DISAPPOINTED THAT GOVERNMENT TAD TAKEN A FAIRLY ABSOLUTE STANCE AS REGARDS SELECTIVE AND CONTROLLED IMPORTATION OF FOREIGN LABOUR TO ABSORB SOME OF THE REAL AND IMMEDIATE PRESSURES FOR SOME OF OUR INDUSTRIES,

HE SAID ADMINSTRATIVE EXPEDIENCY ALONE NEVER JUSTIFIED INACTION; MOST OF THE OTHER ARGUMENTS USED TO REJECT THE IDEA DID REALLY STAND UP TO SCRUTINY.

NOT

HE ALSO SAID THAT,

OVERALL, THE GOVERNMENT HAD OBJECTIVELY DONK VERY LILLTE OVER THE YEARS TO HELP INDUSTRY IN HONG KONG IMPROVE QUALITY AND PRODUCTIVITY.

"A SHORTAGE OF LABOUR TENDS TO PUSH UP WAGES AND PRICES, AND DAMPENS COMPETITIVENESS; SO SOLUTIONS PROPOSED HAVE TO ALSO TAKE INTO ACCOUNT THE TIME FACT AS WELL, IF THEY WISH TO BE CREDIBLE, HE ADDED.

/ON ECONOMIC

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