108g/mg1.pa O'MARA(640)
CONFIDENTIAL
being equal, we certainly do not want to highlight the management and use of the Exchange Fund. The position would be made more acceptable if the Financial Secretary indeed informed Legco of the new interpretation, although I imagine that he would need to indicate that the Hong Kong Government would be legislating to put the matter right in due course. I do not think they could postpone any action sine die.
I am copying this letter to Chris Elston at the Bank.
Your Linceres,
Margaret O'han
MISS M O'MARA
CONFIDENTIAL