11

are the last to be used and the first to be repaid. As to

the additional credit facility of HK$2 billion provided by

the Hongkong and Shanghai Banking Corporation, the Standard

Chartered Bank and the Bank of China, and by the Exchange

Fund, these funds will not be called upon unless and until

the initial HK$2 billion has been fully drawn. If used,

they will be repaid last so as not to affect the terms of

the first two facilities. But I am glad to say that the

Guarantee Corporation is unlikely to need to call upon the

additional credit facilities in the second package. At

this juncture, because there still seems to be a good deal

of public misunderstanding on this point, let me

re-emphasise that any moneys used from the Exchange Fund

are a loan to be repaid, with interest. It follows that

the assets of the Exchange Fund are not depleted by the

action that has been taken.

Sir,

25.

Mr. David Li in referring to the rescue package

said that "the Government was running round sticking on

Band-Aids" I thought he was being critical, but looking

at the package of this particular product, I see that it is

designed to promote faster natural healing and that it will

not reopen wounds when removed. In other words, that is

just what is needed.

26.

8

In view of recent events, Miss Lydia Dunn and Mr.

Thomas Clydesdale doubted the need for a stock index

futures market in Hong Kong. It has been referred to as a

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