XN000022-1988-11-05 — Page 2

SATURDAY, NOVEMBER 5, 1988

HK'S FUTURE ROLE AS MAJOR SERVICE CENTRE FOR SOUTH CHINA

IN

HONG KONG SEES ITS FUTURE ROLE AS BEING THE MAJOR SERVICE CENTRE FOR SOUTH CHINA IN GENERAL AND THE PEARL RIVER DELTA REGION PARTICULAR, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (SATURDAY).

ADDRESSING THE PACIFIC

CHIEF EXECUTIVE OFFICERS INSTITUTE'S 1988 ROUNDTABLE IN CALIFORNIA, MR NENDICK SAID THE GOVERNMENT WOULD DO ITS BEST TO CREATE THE APPROPRIATE ENVIRONMENT FOR THIS.

WERK

HE SAID THIS MEANT MAKING SURE THAT THE FINANCIAL MARKETS ABLE TO MEET THE NEEDS OF HONG KONG, CHINA AND THE ASIA-PACIFIC REGION AND THAT THE PHYSICAL INFRASTRUCTURE, PARTICULARLY PORT AND AIRPORT FACILITIES, COULD KEEP PACK WITH INCREASING DEMAND.

THIS ALSO MEANT MAKING SURE THAT OUR PEOPLE HAD THE NECESSARY SKILLS AND EXPERTISE TO SUSTAIN OUR ECONOMIC GROWTH AND TO ASSIST IN CHINA'S DevelopmeNT, THROUGH THE TRANSFER OF TECHNOLOGY AND BUSINESS AND MANAGEMENT SKILLS, HE SAID.

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MR NENDICK SAID THE GOVERNMENT WAS ADDRESSING ALL THESE ISSUES.

"WE ARE CONDUCTING A SERIES OF STUDIES WHICH WILL ALLOW US TO TAKE SOME MAJOR DECISIONS IN THE NEAR FUTURE ON A SECOND AIRPORT AND FURTHER PORT DEVELOPMENT AND OTHER LONG-TERM INFRASTRUCTURAL PROJECTS.

"WE ARE INCREASING THE NUMBER OF STUDENT PLACES AT TERTIARY LEVEL INSTITUTIONS AND WE ARE TAKING FIRM ACTION TO REMEDY SHORTCOMINGS REVEALED BY THE STOCK MARKET CRASH IN OCTOBER 1987," HE

SAID.

MR NENDICK SAID THE GOVERNMENT WAS DETERMINED TO MAINTAIN AND DEVELOP HONG KONG'S POSITION AS AN INTERNATIONAL FINANCIAL CENTRE, AND URGED INTERNATIONAL INVESTORS ΤΟ HAVE CONFIDENCE IN THE EFFICIENCY AND INTEGRITY OF OUR MARKETS.

MR NENDICK SAID HONG KONG HAD OVER THE PAST YEAR BUILT ON THE EXPERIENCE GAINED LAST OCTOBER.

"WHILST WE ARE CONSCIOUS OF THE NEED TO AVOID OVER-REGULATION THERE ARE FURTHER SAFEGUARDS WHICH WE ARE IN THE PROCESS OF PUTTING IN PLACE TOO, HE SAID.

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HE SAID LEGISLATION WAS PASSED LAST JULY REQUIRING MAJOR SHAREHOLDERS, DIRECTORS AND CHIEF EXECUTIVES OF PUBLICLY LISTED COMPANIES TO DISCLOSE THE EXTENT OF THEIR BENEFICIAL HOLDINGS AND ENABLING LISTED COMPANIES TO DISCOVER THE BENEFICIAL OWNERSHIP OF ANY SHARE HOLDING.

"WE ARE