TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 130

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HKC 100/1

13 JUL 1988

DEST OFFICER

INDEX

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11 JUL 1988

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PS/Lord Glenarthur

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My Hom Hand 11006

Many thanks. Ladd

Gunathu used and the masciat in the excement speaking more. M. Mac Andrew was keen that there sumen be no foot.

dragging by HICS.

FROM: CO Hum

DATE:

Hong Kong Department

11 July 1988

M. Morris is Kindly producing a short dryt more.

Mind tamen

(BILLSL)

12/2

THE HAY DAVISON SECURITIES REVIEW COMMITTEE

A-attached

0

1.

Mr Nick MacAndrew will call on Lord Glenarthur on 12 July to

discuss the Securities Review Committee's report. He is the

Managing Director of Schroders Asia Limited, one of the leading merchant banks in Hong Kong. The purpose of his call is to emphasise that the Hong Kong Government should be encouraged to press ahead with the reforms proposed in the SRC report.

2.

52

I submit a list of points to draw on during the meeting.

The

background and a summary of the SRC report are set out

in my submission of 3 June.

4.

Since publication of the report on 2 June, the Hong Kong

Government have moved quickly to consider how the recommendations should be implemented. They are committed to quick and effective

action on the report: there is no basis for allegations in the press

and elsewhere that the Hong Kong Government lack determination to

see implementation through.

5. In one important area action has already been taken. Under pressure from the Hong Kong Government the Management Committee of the Stock Exchange of Hong Kong Limited have decided to recommend

amendments to their memorandum and articles of association at an

Extraordinary General Meeting on 20 July. The amendments cover the SRC report's recommendations on the composition of the Council and the nominating committee. The Hong Kong Government are satisfied that the proposals are in line with the spirit of the recommendations. The Hong Kong Government have also endorsed transitional arrangements which, although substantially

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