STATE OF THE RESERVES THROUGH THE PUBLISHED AUDITED ACCOUNTS AT THE END OF EACH FINANCIAL YEAR.
5.
}
REFERENCE TO FUNDS INVESTED IN THE EXCHANGE FUND IN PARAGRAPH 10 OF MY TELNO 885 MEANS THE FISCAL RESERVES DEPOSITED WITH THE EXCHANGE FUND. WE DO NOT INTEND THE HKD 15 BILLION TO BE IN 1991 PRICES, BUT RATHER TO BE HKD 15 BILLION AT MONEY OF THE DAY PRICES. IN OTHER WORDS, THE SUM WILL NOT GROW IN REAL TERMS IN LINE WITH INFLATION.
7. WE DO NOT INTEND THAT ANY LIMIT SHOULD APPLY TO BORROWING BY PUBLIC BODIES GUARANTEED BY HKG, UNLIKE HKG BORROWING ITSELF. TO GIVE AN IDEA OF THE LIKELY SCALE OF SUCH BORROWING BY 1997, UNDER OPTION 2 WE FORECAST HKD 10.7 BILLION BORROWING BY THE AIRPORT AUTHORITY AND HKD 8.1 BILLION BORROWING BY THE MASS TRANSIT RAILWAY CORPORATION. THESE FIGURES DO NOT INCLUDE FINANCING COSTS.
8. GRATEFUL FOR ANY COMMENTS DESKBY 22233OZ. I SHALL BE AT FANLING BUT TELEGRAMS WILL BE BROUGHT TO ME BEFORE THE MEETING.
WILSON
(20)
Redacted Under FOI Exemption Sec 127(1)(a)(c)(d)
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HMLNAN 6790