Registry No.

ECURITY CLASSIFICATION

Top Secret,

Secret.

Confidential.

Restricted.

Unclassified.

RIVACY MARKING

In Confidenc

Copy to PS1 Mr. Rowlands

DRAFT

To:-

Mr Murray

CONFIDENTIAL

submission

Mr Cortazzi

PS/Lord Goronwy Roberts

1

1

Type 1 +

From

....

MR STEWART

•Tefephone No. Ext.

HONG KONG: INVESTMENT IN SOUTH AFRICAN STOCK

ir Reid, CSAD,

R. E308

Вья

BLOCK CAB

Background

+

Department

$

DSR 11

Mr Maud, FRD

G.61 B/G

ir Smith,

Senior Economic

G/72/G

Adviser

Mu-hippey

(Ines Kang

& values will

differ

because I

Huelvatung

archange

nator).

It has emerged from the latest available report from the

Hong Kong Government's Director of Auditing Services for the

financial years. 1974/75 and 1975/76 that the Hong Kong...

have,

Government has invested some of its surplus financial balances

in South African stocks. I attach a table listing 12 different

41

stocks in which investments have been made. It will be seen

that the Hong Kong Government purchased one new stock,

50,000 DM worth of South African Government 7.75% bonds, in

1975/76 and that other changes in its holdings during the same

financial year resulted in total holdings of approximately

£2,832,836 at 31 March 1976 compared to approximately

бног 82,360,949 at 31 March 1975.It is not known,when most of the L stocks were originally purchased. Figures for the 1976/77 financial year would not normally be available to us before

December 1977.

South African

*

2. The stocks in which the Hong Kong Government have invested are Euro-currency loans, mainly in Deutschmarks,

buttheir in undoubtedly within South Afrion. Most of the

stocks held are for general South African Government use

(six .cases). The others are for the State Electricity Board

(ESCOM) and the State Iron and Steel Corporation (ISCOR)

/(four

·‚,1」 ‛》 -

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