HONG KONG STUDY
ANNEX I
CURRENCY AND FINANCE
A.
Present Situation
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HK$10=£1
(approx)
Relationship with HMG in Currency and Banking
1.
The Hong Kong Letters Patent and Royal Instructions,
in addition to conferring general powers of control over
executive and legislative matters on HMG, specifically
make legislation relating to currency and the issue of
bank notes subject to the approval of the Secretary of
State. In practice, the Hong Kong Government runs its
financial affairs quite independently of HMG." The Treasury
has certain responsibilities under the Hong Kong (Coinage)
Order 1936 (as amended). When a new coin is needed, or
when a coin is to be demonetised, the Treasury's formal
approval is required. Also, under the Order Hong Kong is
required to have its coinage struck by the Royal Mint.
Apart from this neither the Treasury nor the Bank of
England have any specific functions in relation to Hong
Kong, nor any formal relationship with the Hong Kong
Government. Moreover, generally speaking HMG have no
specific reliability for the financial obligations of
the Hong Kong Government. However, in the last resort HMG
would be regarded as responsible for Hong Kong since it is
a colony over which, formally speaking, they have plenary
/powers
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