XN000022-1988-06-17 — Page 6

FRIDAY, JUNE 17, 1988

"TO ALLOW FOR

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GREATER CO-OPERATION WITH LAW ENFORCEMENT AGENCIES IN HONG KONG, IT IS PROPOSED THAT INFORMATION MAY ALSO BE DISCLOSED TO THE FINANCIAL SECRETARY, THE SECRETARY FOR MONETARY AFFAIRS AND ANY OTHER PUBLIC OFFICER AUTHORISED BY THE FINANCIAL SECRETARY, WHERE IN THE OPINION OF THE REGISTRAR IT IS IN THE PUBLIC INTEREST FOR THE INFORMATION TO BE DISCLOSED, THE SPOKESMAN SAID.

HE SAID EXPERIENCE HAS ALSO SHOWN THAT FURTHER GENERAL EXEMPTIONS FROM THE ORDINANCE WERE REQUIRED TO FACILITATE LEGITIMATE BUSINESS TO BE CONDUCTED WITHOUT UNDUE HINDRANCE.

"CERTAIN TRANSACTIONS HAVE BEEN CAUGHT WHICH OUGHT NOT TO BE. AND WERE NOT INTENDED TO BE CAUGHT. FLEXIBILITY IS ALSO NEEDED TO DEAL WITH SPECIFIC CASES.

"IT IS THEREFORE PROPOSED THAT AUTHORISED INSTITUTIONS UNDER THE BANKING ORDINANCE, BUT NOT THEIR SUBSIDIARIES, SHOULD ВЕ WHOLLY EXEMPTED FROM THE PROVISION OF THE ORDINANCE," HE SAID, ADDING THAT THE HIGHLY COMPETITIVE ENVIRONMENT FOR THE BUSINESS OF BANK LENDING PROVIDES ADEQUATE SAFEGUARDS AGAINST EXPLOITATION OF BORROWERS.

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"IT IS ALSO PROPOSED THAT THE PROVISIONS ON EXCESSIVE INTEREST RATES SHOULD NOT APPLY TO ANY LOANS THAT ARE MADE TO A COMPANY WITH PAID UP SHARE CAPITAL OF NOT LESS THAN $1 MILLION OR, IN RESPECT OF SUCH LOAN, TO ANY PERSON WHO MAKES SUCH LOAN, HE SAID.

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UNDER ANOTHER AMENDMENT, IT IS PROPOSED TO GIVE POWERS ΤΟ THE REGISTRAR TO GRANT EXEMPTIONS, EITHER GENERALLY OR IN A PARTICULAR CASE, THE SPOKESMAN SAID.

THE BILL IS EXPECTED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL FOR FIRST READING ON JUNE 22.

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MEMBERS OF THE PUBLIC WHO WISH TO COMMENT ON THE PROVISIONS THE BILL SHOULD WRITE TO THE SECRETARY FOR MONETARY AFFAIRS AT ADMIRALTY CENTRE, TOWER II, 24TH FLOOR, OR TO OMELCO AT 8 JACKSON ROAD, CENTRAL.

LORD YOUNG ON POUR-DAY VISIT

THE SECRETARY OF STATE FOR TRADE AND INDUSTRY, LORD YOUNG WILL ARRIVE ON SUNDAY (JUNE 19) FOR A FOUR-DAY VISIT.

DURING HIS STAY IN HONG KONG, LORD YOUNG WILL MEET MEMBERS OF THE BUSINESS COMMUNITY AND HOLD DISCUSSIONS WITH THE BRITISH TRAI COMMISSION ON UK BUSINESS INTERESTS HERE.

/THE SECRETARY