TNAG-1850-FCO40-2625-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 50

TRAJECRIPT A SELECT COMMITTER ON HONG KONG 12 JUTE 1989

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SIR DAVID VILSUI (CONT>:

But my last point, although we have been buffeted by practically everything that could buffet Hong Kong, not

just those horrendous events but at the same time WB wora

tackling another huge problem of Vietnamese boat people and putting up with the effects of two typhoons, despite all this buffeting, the institutions have held.

You mentioned, Chairman, the drop in the Hang Seng Index, it has gone down some 700 points since the declaration of Martial Law, but what is I think very

important is that those institutions held, the Stock

Exchange held, the Futures Exchange held, the dollar link held, the banking system held. When we had the crash in

October of 1987 some of our financial institutions were

shown to be defective. Ve moved urgently to improve them. Those changed arrangements have stood the test of a major crisis and that too reflecta a great credit on the institutions and on the people who run then.

CHAIRMAN :

Sir David, you have alluded to the positive features which clearly do exist amidet a very bleak situation and I think the Committee would wish to exchange some views with you later on the agonising crisis of the Vietnamese boat people, which was one of the other aspects which you

mantioned.