TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 103

Annex D

Of

9.64.

system

$20

27

Secretary

One

of

the

failings

of

the

existing Hong Kong

has been the lack of distance.

In the early morning

October 1987, the SEHK Chairman called the Financial

subsequently, rightly

Or

wrongly,

been consulted on the market closure.

who

was

presented

as

having

In

future,

the

Administration

It will have

advice.

I f

should be held in reserve.

to hear the SC and to take an opportunity absolutely necessary it can overrule the SC

if need be by direction but preferably by sheer political

authority.

9.65.

It

is

that

believe that

purely

the

it will

Committee

for

Government representation

role is to provide advice, not to make policy; if officials

are represented,

reason

that

we

advise against

on the Advisory Committee.

Its

sector private

tend

will

membership

to

make policy.

work

best

We also

if it has a

in as,

Our

view,

securities

industry people

positive contribution if it is clearly their body.

to make a

are

likely more

1

3

-

}