XN000022-1987-11-26 — Page 2

THURSDAY, NOVEMBER 26, 1987

POLICIES REMAIN FIRMLY IN PLACE: SIR DAVID

ALTHOUGH IT

GROWTH RATE THAT APPEARS

HONG KONG'S ECONOMIC

IN HAPPENED

THE WORLD'S FINANCIAL BE

WHAT KAS AFFECTED BY

IN HIS MARKETS, POLICIES OUTLINED BY THE GOVERNOR, SIR DAVID WILSON,

WILL NOT BE AFFECTED ADDRESS TO THE LEGISLATIVE COUNCIL LAST MONTH AND THEY WILL REMAIN IN PLACE.

THIS

THE

HONG

SPEAKING WHEN KONG MANAGEMENT

AT

THE ASSOCIATION

ANNUAL THIS

SIR DAVID EMPHASISED

DINNER OF

FELLOWSHIP (THURSDAY) EVENING.

THE

GOVERNOR

SAID SOME

COMMENTATORS

HAD SUGGESTED

THAT, EFFECTS, OF THE SOCIAL

BECAUSE OF THE STOCK MARKET CRISIS AND ITS POSSIBLE KNOCK-ON THE GOVERNMENT WOULD NOT NOW BE ABLE TO CARRY OUT ALL PROGRAMMES THAT HE ANNOUNCED LAST MONTH.

THIS IS NOT THE A POINT OF SAYING

CASE.

THAT, PLANS

"I SHOULD LIKE TO MAKE IT CLEAR THAT WHEN THOSE POLICIES WERE ANNOUNCED I MADE EVEN WHEN THE ECONOMY WAS DOING WELL, WE MUST BE PRUDENT IN OUR FOR NEW SPENDING, HE SAID.

11

"THE SERIES OF POLICIES WHICH I ANNOUNCED IN THAT DESIGNED WITH THIS CONSIDERATION IN MIND.

SIR DAVID RECALLED THAT THE PAST FEW WEEKS HAD PS IN HONG KONG AND IN THE REST OF THE WORLD.

―

SPEECH WERE

BEEN DIFFICULT

OUR FUTURES MARKET "OUR STOCK MARKET WAS TEMPORARILY CLOSED.

RAPID AND LAD SERIOUS PROBLEMS WHICH MADE IT ESSENTIAL TO BRING IN A

KEEP TRADING AND ASSIVE LIFEBOAT OPERATION TO ENSURE THAT IT COULD

THE REST

THE NOT COLLAPSE IN A WAY WHICH FINANCIAL SYSTEM.

WOULD

HAVE

AFFECTED

OF

50 PER CENT IN LESS THAT IT STANDS

OCTOBER

"THE HANG SENG INDEX HAS FALLEN ALMOST THAN TWO MONTHS, EVEN THOUGH IT IS WORTH REMEMBERING

EARLY PART OF TODAY AT MUCH THE SAME LEVEL AS IN THE YEAR," HE SAID.

LAST

HE OBSERVED THAT THE INDEX HAD PREVIOUSLY ALSO GONE UP FAST.

GONE

DOWN

FAST

BUT

IT

HAD

IN OUR WHAT

THE GOVERNOR SAID THESE EVENTS HAD SHOWN UP WEAKNESSES

WE SHOULD ANALYSE CAREFULLY

SYSTEM AND IT WAS IMPORTANT THAT THEY WERE AND THEN PUT THEM RIGHT.

SECURITIES REVIEW COMMITTEE,

OTHER MEMBERS FROM

"THAT IS WHY I HAVE APPOINTED A CHAIRED BY MR IAN HAY DAVISON AND INCLUDING FIVE THE HONG KONG COMMUNITY.

++

/THE COMMITTEE