XN000022-1992-10-22 — Page 3

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THURSDAY, OCTOBER 22, 1992

NOT

"THE INCLUSION OF THE SECONDARY PURPOSE OF THE FUND DORS MEAN THAT THE GOVERNMENT WOULD BAIL OUT INDIVIDUAL BANKS WHENEVER THEY RUN INTO FINANCIAL DIFFICULTIES, MR NENDICK SAID.

47

"EACH CASE WILL CONTINUE TO BE LOOKED AT ON ITS OWN MERITS AND THE FUND WILL ONLY BE USED TO DEAL WITH PROBLEMS AFFECTING THE STABILITY AND INTEGRITY OF THE ENTIRE SYSTEM AS A WHOLE,' HE SAID.

Fr

THE SECONDARY PURPOSE WILL BE SUBORDINATE TO THE PRIMARY PURPOSE OF MAINTAINING EXCHANGE RATE STABILITY. SHOULD THERE BE ANY CONFLICT, THE PRIMARY PURPOSE WOULD PREVAIL, MR NENDICK STRESSED.

P+

TO REFLECT THE WIDER AMBIT OF THE FUND AND THE INCREASED RESPONSIBILITIES OF THE EXCHANGE FUND ADVISORY COMMITTEE, WHICH ADVISES THE FINANCIAL SECRETARY ON MATTERS RELATING TO THE CONTROL OF THE EXCHANGE FUND, THE GOVERNMENT WILL SUITABLY EXPAND THE COMMITTEE'S MEMBERSHIP TO INCLUDE ADDITIONAL DISTINGUISHED MEMBERS OF THE FINANCIAL AND RELATED FIELDS.

"THE EXPANDED COMMITTEE WOULD FUNCTION VERY MUCH LIKE A MANAGEMENT BOARD AND IT WOULD MEET MORE FREQUENTLY THAN IS PRESENTLY THE CASE, MR NENDICK SAID.

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DEPOSIT-TAKING

COMPANIES

BANKING ADVISORY COMMITTEE AND ADVISORY COMMITTEE WILL CONTINUE TO PLAY AN ADVISORY ROLE IN MATTERS RELATING TO THE BANKING ORDINANCE AND BANKING SUPERVISION ISSUES.

THE MONETARY AFFAIRS BRANCH, INCLUDING THE FINANCIAL SERVICES DIVISION AND THE SPECIAL UNIT DEALING WITH SECURITIES AND FUTURES MARKETS, WOULD BE RENAMED ON THE ESTABLISHMENT OF THE HKMA.

HK'S POLITICAL DEVELOPMENT OUTLINED

* *

NEED

THE SIGNING OF THE JOINT DECLARATION IN 1984 INTRODUCED THE FOR SIGNIFICANT DEVELOPMENT OF HONG KONG'S POLITICAL STRUCTURE DURING THE TRANSITION PERIOD, THE ACTING CHIEF SECRETARY, MR BARRIE WIGGHAM, SAID IN VANCOUVER ON WEDNESDAY (OCTOBER 21).

SPEAKING ON "HONG KONG: OUR NEXT FIVE YEARS" AT A BUSINESS LUNCH IN VANCOUVER, MR WIGGHAM TOLD AN AUDIENCE OF 500 REPRESENTATIVES OF THE BUSINESS COMMUNITY THAT FOR MANY HISTORICAL REASONS THERE HAD BEEN LIMITS ON DEMOCRATIC REPRESENTATION IN HONG KONG IN THE PAST.

HE SAID THE JOINT DECLARATION AND THE BASIC LAW SET OUT A FUTURE FOR THE TERRITORY IN WHICH THE LEGISLATURE WOULD BE FULLY AND DEMOCRATICALLY ELECTED.

"THE ISSUE IS NOT WHETHER DEMOCRACY WILL ARRIVE BUT THE PACE AT WHICH IT IS INTRODUCED," MR WIGGHAM SAID.

/HE EMPHASISED