Overseas assets
Sir: Nicholas Davenport in his 30 October article points, among other things, t°
Britain's extremely efficient financial systeln
and the possibility of pledging overseas portfolios for the country's overseas borrovv"
ings as part of the armoury available to th! authorities for stabilising the country s
financial situation. It should be pointed out 0 that it does little good having an extrenlelY efficient financial system if', at the end of the day, the people responsible for making the final decisions as to where the money is to he used continue to make bad investment decisions. The idea of pledging the overseas Portfolios as collateral for Britain's overseas borrowings smacks of confiscation of private assets. In a mood of goodwill and patriousni a number of people and institutions owoll these overseas assets might well be prePare, to make their assets available as collaterai but the quid pro quo for this gesture Os, surely be that somehow or another the,)n should be given an important say not out)/ I how these assets are to continue to bee invested or be sold but also in how th, borrowings, for which their assets are be111.° pledged, are going to be spent. The fact IS: until there is a change of management one now will have any faith in the gover.r1.1 ment making proper use of the financit; system or making use of private asset support official policy. Why should theY • James Filmer Wilson
St George's Building, Hong Kong
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