XN000022-1987-11-11 — Page 6

WEDNESDAY, NOVEMBER 11, 1987

MR JACOBS NOTED THAT THE REPORT ON THE

INCIDENT, PREPARED BY

LEGCO

THE JOINT VENTURE COMPANY, HAD BEEN CAREFULLY CONSIDERED BY THE AD HOC GROUP ON THE DAYA BAY PROJECT, IN ADDITION, THE GROUP WAS GIVEN AN EXTENSIVE BRIEFING ON THE SUBJECT BY ENGINEERS FROM THE COMPANY.

ΤΟ

THE

RESPONSE PAYING TRIBUTE TO THE WORK OF THE AD HOC GROUP IN

ON THE INCIDENT, HE SAID: "NOT ONLY HAVE THEY SOUGHT INFORMATION INCIDENT BUT THEY HAVE ENSURED THAT THIS HAS ALSO BEEN MADE AVAILABLE TO THE PUBLIC.

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FINANCIAL MATTERS

MR JACOBS SAID THE GOVERNMENT WOULD LIKE TO RETURN COMMERCIAL BANKS UNDER ITS CONTROL TO PROFITABLE OPERATION AND DISENGAGE ITSELF FROM OWNERSHIP.

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"THAT IS WHAT OUR EFFORTS ARE ALL ABOUT, HE SAID IN REPLYING TO A POINT RAISED BY THE HON DAVID LI.

"IN THE MEANTIME, THERE IS NO CONFLICT OR CERTAINLY NONE THAT THE CANNOT BE EASILY RESOLVED. THE BANKS IN QUESTION MUST COMPLY WITH BANKING ORDINANCE JUST LIKE ANY OTHER BANKS."

MR LI HAD QUESTIONED WHETHER THERE WAS A CONFLICT OF INTEREST WHEN THE SECRETARY FOR MONETARY AFFAIRS ACTED "BOTH AS INDUSTRY REGULATOR AND AT THE SAME TIME AS CHAIRMAN OF .

COMMERCIAL BANKS (UNDER GOVERNMENT OWNERSHIP)" AND WHETHER THIS COULD

RESOLVED BY THE GOVERNMENT MAKING

EFFORTS IN RETURNING THE BANKS TO PROFITABLE OPERATION AND DISPOSING OF THEM IN THE MARKET.

GREATER

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LI, THE FINANCIAL

KONG DOLLAR CAPITAL

REFERRING TO ANOTHER POINT MADE BY MR SECRETARY SAID THAT ON TAXATION OF HONG

MARKET INSTRUMENTS, THE COMMISSIONER OF INLAND REVENUE HAD RECENTLY RECEIVED A FORMAL SUBMISSION FROM THE CAPITAL MARKETS ASSOCIATION.

"THIS AROSE FROM THE CONTINUOUS DIALOGUE ESTABLISHED RECENTLY BETWEEN THE ASSOCIATION AND THE MONETARY AFFAIRS BRANCH, HE SAID.

"THE SUBMISSION WILL BE EXAMINED CAREFULLY. THERE WILL NERD ΤΟ BE FURTHER CONSULTATION WITH THE FINANCIAL COMMUNITY."

RESOURCE ALLOCATION

DEALING WITH RESOURCE ALLOCATION, MR JACOBS NOTED THAT A NUMBER OF MEMBERS HAD SPOKEN IN SUPPORT OF THE GOVERNMENT'S EFFORTS TO IMPROVE FINANCIAL PLANNING AND FINANCIAL MANAGEMENT IN THE PUBLIC SECTOR.

HE SAID IT WAS INTENDED TO MAKE THE BEST POSSIBLE USE OF THE MEDIUM TERM FORECAST. "IN ESSENCE, THE FORECAST HAS EXTENDED OUR PLANNING HORIZON AND NOW ENABLES US TO MAKE MORE INFORMED DECISIONS ON THE EXTENT TO WHICH WE HAVE ROOM TO EMBARK ON NEW SERVICES AND TO IMPROVE EXISTING ONES IN FUTURE YEARS. IT IS ABOUT PRIORITIES," HE SAID.

MEQUALLY IMPORTANT