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67.
My honourable Friends Mr. Li Fook-wo and Mr. Sayer argued for the registration and control of finance companies.
I am still inclined to believe that any action here must
involve a large element of voluntary association and self- policing by the companies themselves, in contrast to the complications involved in statutory control. And, in any case, we must first concentrate on the amendments to the Banking Ordinance and the Protection of Depositors Bill, which
I referred to in the budget speech.
68.
Nevertheless, having said this, I must admit that
my mind is not closed on this question and I am most anxious to tap all available advice on the whole issue of how, and to what extent, control over the activities of finance
companies should be strengthened; the Banking Advisory
Committee is one source I am tapping.
69.
As regards the limited moratorium on banking licences, I am glad to see that my tentative thoughts on greater freedom have generally been welcomed by honourable Members; subject, of course, in the case of a foreign applicant to the question of reciprocity which is, and will remain, a part of our policy.
That is to say, having established a case for accepting an application for a licence it will only be actually granted if the applicant's country of origin would grant a licence to a Hong Kong incorporated bank satisfying similar criteria.
70.
(d) Inflation and rising prices
(1) Introduction
And now, Sir, I turn to the fourth major theme of this debate and the one which has, perhaps, loomed largest,
namely, inflation and rising prices.
71.
Most honourable Members seem to accept that our
inflation is largely externally induced, but they also argue that it is (or could be ), to a degree, generated internally.
This cannot be denied and I accepted this in paragraph 31 of my budget speech; but I also claimed, in paragraph 32,
that it was now largely under control. And I stand by this. Let there be no mistake: internally generated inflation is not at the root of the present phenomenon of rising prices
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