CONFIDENTIAL
GRS 450
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 3443
OF 18052OZ OCTOBER 86
FOR HUM, HKD
FROM SECRETARY FOR MONETARY AFFAIRS
SHOULD HONG KONG HAVE A CENTRAL BANK?
64
TOP
@ DIST ?
10211
Hald 100th
- 7 NOV 1986
SUR LES
1.
FOLLOWING ARE PRESS REPORTS IN THE SOUTH CHINA MORNING POST
OF RECENT COMMENTS BY DAVID LI AND SIR MICHAEL SANDBERG ON THE
ABOVE SUBJECT.
2.
DAVID LI:
LAST PAPEL
'' WHAT WE HAVE IN HONG KONG INSTEAD IS THE GOVERNMENT
PROTECTING ONLY ONE TO TWO BANKS.
THE PRIVILEGES THAT THE HONGKONG AND SHANGHAI BANKING CORP
ENJOYED FOR PERFORMING CERTAIN CENTRAL BANKING FUNCTIONS
WERE UNFAIR TO OTHER BANKS IN THE TERRITORY, HE ADDED. THERE WAS A CONFLICT OF INTEREST WHEN SUCH FUNCTIONS WERE
PERFORMED BY A PRIVATE, PROFIT-MAKING BANK.
WHAT YOU HAVE SEEN IN THE LAST FEW YEARS IS THAT SOME PEOPLE
ARE MORE EQUAL THAN OTHERS IN THE WORLD OF FIERCE COMPETITION
IN THE BANKING SECTOR.
MR. LI EXPRESSED DISAPPOINTMENT THAT THE GOVERNMENT FAILED TO
RECOGNISE THE NEED FOR A BODY PERFORMING THE FULL FUNCTIONS
NORMALLY ASSOCIATED WITH A CENTRAL BANK. (HE DECLINED TO CALL
SUCH A BODY A CENTRAL BANK'' BECAUSE, HE SAID, THE TERM
WOULD NOT BE APPROPRIATE IN HONG KONG'S UNIQUE POLITICAL
CIRCUMSTANCES.)
THE PRESENT FRAGMENTATION OF SUPERVISORY CONTROLS AND OTHER
CENTRAL FUNCTIONS AMONG PUBLIC AND PRIVATE INSTITITIONS COULD
IMPAIR THE AUTHORITIES' ABILITY TO FORESTALL OR COPE WITH A BANKING CRISIS, HE CLAIMED.
(OCTOBER 11, 1986)
اخر
3. SIR MICHAEL SANDBERG:
''HONG KONG SHOULD NOT SET UP A CENTRAL BANK EITHER BEFORE OR AFTER 1997, HONGKONG BANK CHAIRMAN SIR MICHAEL SANDBERG SAID
CONFIDENTIAL
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