TOP SECRET
ANNEX I
HONG KONG: STERLING BALANCES
The attached tables provide comprehensive details of
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Hong Kong's sterling balances at 30th June 1967 (together with totals at some earlier dates in Table 3). These figures differ from those used in the standard series of "U.K. sterling liabilities and claims" by the inclusion of certain official holdings of
securities which are omitted from the standard series* either
because they are not liabilities of the United Kingdom (viz. Commonwealth sterling securities) or because they are regarded as long-term investments rather than monetary assets (viz. British government stocks held in the Crown Agents' Special Funds and U.K. local authority securities). However, these securities constitute part of Hong Kong's total official sterling assets and are therefore included for the purpose of this exercise. Official Balances
These are all held with the Crown Agents and comprise backing for the note issue (Note Security Fund), general government reserves (General Fund) and funds, mainly invested in securities, which are earmarked for special purposes, e.g. pension funds, savings banks' funds, etc. (Special Fund). About one-fifth of the total of official balances was held in the form of deposits and the remainder in securities, mainly gilt-edged. A maturity analysis of these securities is not available to the Bank of England; however, or total gilt-edged securities held with the Crown Agents by all countries at the end of June, a little under one-half were in 0-5 year stocks and most of the remainder in over 10 year stocks.
*Asterisked in Table 2.
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