XN000022-1990-11-16 — Page 3

FRIDAY, NOVEMBER 16, 1990

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STATEMENT ON HKCC'S DECISION

IN RESPONSE TO PRESS ENQUIRIES REGARDING THE DECISION BY THE HONG KONG CABLE COMMUNICATIONS LTD NOT TO GO AHEAD WITH THE CABLE TV PROJECT, A GOVERNMENT SPOKESMAN ISSUED THE FOLLOWING STATEMENT TODAY (FRIDAY):

"THIS IS A COMMERCIAL DECISION MADE BY BUSINESSMEN. WE RESPECT THAT DECISION AND IT IS NOT OUR POLICY TO INTERFERE IN SUCH MATTERS. THE GOVERNMENT REMAINS COMMITTED TO THE CONCEPT THAT THE HONG KONG COMMUNITY SHOULD HAVE ACCESS TO THE WIDEST POSSIBLE RANGE OF BROADCASTING SERVICES, TAKING ADVANTAGE OF MODERN TECHNOLOGY."

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GOVERNMENT TO MAINTAIN LINKED EXCHANGE RATE SYSTEM

LINKED

THE GOVERNMENT HAS NO INTENTION OF DEPARTING FROM THE EXCHANGE RATE SYSTEM, THE FINANCIAL SECRETARY, SIR PIERS JACOBS, SAID THIS (FRIDAY) MORNING,

SPEAKING TO MEMBERS

OF THE MEDIA AFTER OFFICIATING AT THE OPENING OF THE 12TH ASIA-PACIFIC FOREIGN EXCHANGE ASSEMBLY, SIR PIERS SAID THE GOVERNMENT HAD THOUGHT OF MANY DIFFERENT ALTERNATIVES BUT THE PRESENT SYSTEM "IS THE ONE THAT SUITS US BEST."

"IT WORKS.

STRENGTHENED STRESSED.

WE

IT HAS BREN TESTED FROM TIME ΤΟ TIME. IT. WE HAVE NO INTENTION OF DEPARTING FROM IT, HE

ASKED TO ELABORATE ON THE REASON WHY THE FOREX TAX WAS NOT A GOOD IDEA, SIR PIERS REPLIED: "MAINLY BECAUSE IT WILL BE A DISINCENTIVE TO FOREX DEALINGS. ACTUALLY IT WILL CHASE BUSINESS FROM HONG KONG."

AWAY

STOCK

ASKED WHETHER THE GOVERNMENT HAS CONSIDERED THE EXCHANGE'S SUGGESTION TO REDUCE THE STAMP DUTY ON SHARES TRANSACTIONS, SIR PIERS SAID HONG KONG WOULD CERTAINLY HAVE TO KEEP THE OVERALL DEALING COSTS COMPETITIVE.

"I AM AWARE THAT MANY PLACES IN THE WORLD ARE LOOKING AT STAMP DUTY ON STOCK EXCHANGE TRANSACTIONS AND THEY ARE LOOKING AT IT IN PARTICULAR IN THE CONTEXT OF NEW ELECTRONIC CLEARING SYSTEMS, HE SAID.

T

HE POINTED OUT THAT OBVIOUSLY THE GOVERNMENT HAS TO CONSIDER THE EFFECT OF ANY INCREASE OR REDUCTION IN A PARTICULAR TAX OR DUTY ON BUSINESS ACTIVITY.

/ASKED IF