TNAG-2477-FCO40-3607-The-Hong-Kong-Association-1992 — Page 61

Selore 1997

In the same way, regulatory issues are for the Hong Kong authorities, not the British Government. We have of course been following closely your dialogue with the Hong Kong authorities on the secondary listing issue and the question of the takeover code. I am glad to hear that things seem to be moving in an encouraging direction. But this is not an area where I or the British Government

can or should wave a magic wand. It must be up to Hong Kong to decide where to strike the balance between adequate regulation to protect investors and maintaining their reputation as a profitable and successful centre

for trade and commerce.

David Gillmore