XN000022-1994-05-04 — Page 10

WEDNESDAY, MAY 4, 1994

THE SPOKESMAN SOUNDED A SPECIAL NOTE OF WARNING THAT INACCURATE INFORMATION PROVIDED IN APPLICATIONS NOT ONLY WOULD LEAD TO REJECTION OF THE APPLICATIONS BUT MIGHT ALSO GIVE RISE TO CRIMINAL AGAINST THE APPLICANTS.

PROCEEDINGS

ENQUIRIES SHOULD BE DIRECTED TO THE AGENCY ON NINTH FLOOR, NATIONAL MUTUAL CENTRE, 151 GLOUCESTER ROAD, WAN CHAI, HONG KONG

(TEL 802 1666).

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FINANCIAL LIBERALISATION IS NOT WITHOUT RISKS

NOTING THE IMPORTANCE OF FINANCIAL LIBERALISATION TO ECONOMIC GROWTH AND DEVELOPMENT, THE CHIEF EXECUTIVE OF THE HONG KONG MONETARY AUTHORITY, MR JOSEPH YAM, SOUNDED HOWEVER A NOTE OF CAUTION CONCERNING THE DOWNSIDE RISKS OF FINANCIAL LIBERALISATION.

SPEAKING AT THE 27TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK (ADB) IN NICE, MR YAM SAID: "THE DOWNSIDE RISKS TO MONETARY AND FINANCIAL STABILITY ARE THERE, PARTICULARLY WHEN NOWADAYS THERE ARE HUGE FLOWS OF FUNDS INTO AND WITHIN THE REGION, AND THESE RISKS SHOULD BE PROPERLY MANAGED."

IN ORDER TO AVOID SUCH RISKS, HE SAID THAT A ROBUST MONETARY SYSTEM, AN EFFECTIVE MONETARY MANAGEMENT MECHANISM, AN ADEQUATE PRUDENTIAL SUPERVISORY SYSTEM, AND PROPER SEQUENCING IN FINANCIAL LIBERALISATION WERE ALL ESSENTIAL.

IN

MR YAM NOTED THAT THE BANK SHOULD ENHANCE ITS ADVISORY ROLE DEVELOPMENT OF FINANCIAL SYSTEMS BY INCREASING TECHNICAL ASSISTANCE AND FUNDS.

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"I WOULD ALSO URGE THE BANK TO INCREASE ITS EFFORTS IN ENCOURAGING THE DEVELOPMENT AND DEEPENING OF THE DEBT MARKET IN THE REGION, MR YAM ADDED. CITING THAT THE ISSUE OF DRAGON BONDS BY THE BANK WAS A GOOD START, HE URGED THE BANK TO INTENSIFY ITS EFFORTS IN THIS AREA.

MR YAM CONGRATULATED THE BANK FOR ITS EFFORTS IN BRINGING TO CLOSE THE NEGOTIATIONS OF THE FOURTH GENERAL CAPITAL INCREASE.

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ON THE BANK'S LENDING PROGRAMME, WHILE NOTING THAT PROPER EMPHASIS NEEDS TO BE PLACED ON THE SO-CALLED CROSS-CUTTING ISSUES, SUCH AS ENVIRONMENTAL PROTECTION AND THE ROLE OF WOMEN IN DEVELOPMENT, MR YAM EMPHASISED THAT "IT IS EQUALLY IMPORTANT THAT THE SHOULD MAINTAIN AN APPROPRIATE POLICY DIALOGUE WITH EACH OP THE BORROWING COUNTRIES THEMSELVES. IN ORDER то APPRECIATE THEIR PRIORITIES AND CONSTRAINTS, AND WORK OUT WITH THEM REALISTIC AND EFFECTIVE STRATEGIES FOR ACHIEVING SUSTAINED GROWTH AND DEVELOPMENT.'

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MR YAM IS CURRENTLY LEADING A HONG KONG DELEGATION TO ATTEND THE 27TH ANNUAL MEETING OF THE ADB IN NICE. OTHER HONG KONG DELEGATES ARE EXECUTIVE DIRECTOR (EXTERNAL) OF HKMA, MR JAMES H LAU JR AND HEAD, EXTERNAL RELATIONS DIVISION OF THE HKMA, MR EDDIE YUE.

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