SECRET
C
(v) Her Majesty's Government accept that the Government of Hong Kong have the right to require the issue of Bonds at any time during the currency of this facility subject to the limitations ont out in oub-paragraphs (11)
Bonds will bo inquod in amounts of. and (iii) above.
not less than HK$100 million.
(vi) The purchase of any Bond under this facility will be
effected by the transfer by the Hong Kong Government to an account with the Bank of England of the appropriate
or by the transfer by the amount in sterling; Hong Kong Government of British Government securities to an equivalent value, taken at a market valuation to be agreed with the Bank of England on the day in question.
On the same day Her Majesty's Government will subject to sub-paragraph (viii) below, issue to the Government of Hong Kong a seven-year non-negotiable Bond for the equivalent amount in Hong Kong dollars, calculated on the basis of the parity rates in sub- paragraph (iv) above.
(v41)
(a) The Government of Hong Kong may redeem Bonds
prematurely in whole or in part without prior consultation where made necessary by reasons of liquidity.
(b) The Government of Hong Kong shall redeem Bonds
prematurely to the extent necessary where their holdings of Bonds would otherwise exceed the agreed limits (except where this arises from temporary fluctuations or where the minimum) redemption amount in (a) below would reduce their holdings below the agreed limits).
(c) Otherwise, Bonds may be redeemed prematurely
by mutual agreement.
(a) In the event of a partial redemption of a Bond,
which redemption would be in an amount of not less than 100 million Hong Kong dollars, a new ¿Bond with the same terms and terminal date would be Logued to the Government of Hong Kong for the
In the principal amount remaining outstanding. case of a total redemption, the Bond would be cancelled.
STOREM
·/(viii) ·