10
Advisory Committee. But I am advised that this requirement
to consult cannot derogate from the express words of the
section which make the Financial Secretary the sole arbiter
over the use of the Exchange Fund for purposes affecting
the exchange value of Hong Kong's currency.
255.
Mr. David Li raised a number of questions relating
to whether the Government could have pressed the
shareholders of the Guarantee Corporation to contribute
more to the package. He even suggested that the Government
could have used the withdrawal of all its financial
I am
business from those institutions as a threat.
surprised by such a suggestion. Making such a threat would
have been wholly irresponsible. My job was to find a swift
solution, not to engage in bluster and discord.
I am
satisfied with and grateful for the support given by the
shareholders of the Guarantee Corporation, a number of
brokers and members of the Futures Exchange, and last but
not least, the Bank of China. All have played a
responsible role in this difficult period.
ZA.
Sir, in looking at the rescue package as a whole,
one must not forget that the first two credit facilities of
HK$1 billion : that is, the HK$1 billion provided by the
shareholders of the Guarantee Corporation, a number of
brokers and members of the Futures Exchange and the
HK$1 billion provided by the Exchange Fund, are structured
in such a way that any funds loaned from the Exchange Fund