XN000022-1994-11-16 — Page 6

WEDNESDAY, NOVEMBER 16, 1904

QUESTION:

THE MONETARY AUTHORITY TODAY INCREASED THE INTEREST RATE, FOLLOWING THE USA, TO 3.75 PER CENT. DO YOU THINK IT WILL HELP TO CONTROL THE INFLATION RATE AND SMOOTH THE

FS:

YES, NORMALLY IT WILL WORK THROUGH INTO INTEREST RATES HERE AND THAT WILL BE HELPFUL IN TERMS OF THE BROAD APPROACH TO INFLATION. I GUESS IT WILL ALSO PROBABLY HELP ΤΟ KEEP PROPERTY PRICES DAMPED DOWN A BIT SO I AM ENTIRELY RELAXED ABOUT INTEREST RATES GOING UP. INDEED IT IS WHAT SOME HAVE BEEN URGING ME TO DO.

QUESTION:

DO YOU THINK THAT IT WILL AFFECT THE INVESTORS TO INVEST IN THE PROPERTY MARKET IN HONG KONG NOW LOAN FROM THE BANK.

1 DO YOU THINK IT WILL AFFECT THE BURDEN

FS:

WELL, IT WILL HELP TO KEEP THE PROPERTY MARKET FROM BECOMING OVERHEATED AGAIN, I HOPE, THAT IS THE WAY I WOULD LIKE TO PUT IT.

QUESTION:

MR MACLEOD, HOW YOU THINK ABOUT YOUR CHOICES OF ATTENDING NEXT YEAR?

FS:

ABOUT NEXT YEAR, WELL WE HAVE ONLY JUST FINISHED THIS YEAR'S, SO ALL WE KNOW AT THE MOMENT IS, IT'S OSAKA BUT THERE'LL BE A LOT OF WORK TO BE DONE, AS I SAID, EVEN IN THE NEXT FEW MONTHS, ΤΟ MAKE SURE THAT THE NEXT MEETING IS A SUCCES3.

QUESTION:

YOUR CHOICES OF ATTENDANCE?

FS:

MY CHOICES OF

WELL WE'LL HAVE TO SEE.

QUESTION:

BEFORE THE NEXT

ANY CONCERNS ABOUT THINGS IN THE AGREEMENT

MEETING? HOW FIRM....

CHANGING

FS:

THE DECLARATION IS THERE, THAT'S IT, IT'S AGREED SO IT CAN'T CHANGE, BUT WHAT WE HAVE TO DO IS PUT FLESH ON THE BONES OF THAT AGREEMENT. WE ALL KNOW IT'S VERY GENERAL AT THE MOMENT, BUT YOU KNOW, IT'S AMAZING THAT NO ONE WOULD HAVE THOUGHT A YEAR OR SO AGO THAT WE WOULD GET THAT RANGE OF DIFFERENT ECONOMIES SIGNING UP TO FREE THIS IS ABSOLUTELY EXTRAORDINARY.

TRADE,

/QUESTION