CYPHER CAT A
ROUTINE HONG KONG
CONFIDENTIAL
TO FORELON AND COMMONWEALTH OFFICE
TELEGRAN NO. 2130
29 OCTOBER 1968
CONFIDENTIAL
EXCHANGE FUND ORDINANCE.
YOUR TELEGRAM 1266 OF 12TH JULY AUTHORISED INTRODUCTION OF AN
ARENDING BILL INCREASING THE BORROWING POWERS OF THE FUND TO
1,500 KILLION HONG KONG DOLLARS AND THE BILL WAS DULY PASSED. THE
NEW STERLING GUARANTEE ARRANGEMENTS WHICH HAVE SUPERSEDED THE HONG
KONG DOLLAR BOND ARRANGEMENT ARE LIKELY TO HEAN SUBSTANTIALLY
GREATER DEMAND FROM BANKS FOR COVER THROUGH THE EXCHANGE FUND. IT
IS PROPOSED THEREFORE TO INTRODUCE A FURTHER AMENDING BILL RAISING
THE BORROWING LIMIT TO 2,000 KILLION DOLLARS
SUBSEQUENT CHANGE MAY, IN THE INTERESTS OF SPEED, BE AUTHORISED
BY RESOLUTION OF LEGISLATIVE COUNCIL.
AND
PROVIDING THAT ANY
2. THE TEXT OF THE BILL IS AS FOLLOWS:-
1. THIS ORDINANCE MAY BE CITED AS THE EXCHANGE FUND CAMENDMENT)
CHO.2) ORDINANCE 1968.
2. SECTION 3 OF THE PRINCIPAL ORDINANCE IS AMENDED IN THE PROVISO
TO SUBSECTION (2) BY DELETING 'FIFTEEN HUNDRED MILLION DOLLARS!!
AND SUBSTITUTING TWO, THOUSAND HILLION DOLLARS, OR SUCH OTHER AMOUNT AS THE LEGISLATIVE COUNCIL MAY BY RESOLUTION FROM TIME TO
TIME DETERMINE,
•
3. GRATEFUL FOR VERY EARLY AUTHORITY UNDER ARTICLE XXVI 3 OF THE
ROYAL INSTRUCTIONS.
SIR D. TRENCH
FILES
F.".A.D.
HONG KONG DEPT.
LET
REF.
KEET
CONFIDENTIAL
REF.