depending on the exchange-rate chosen, plus some extra administration costs; but these could be offset by savings in years when the Hong Kong dollar market value is higher than the safeguard rate.

Option H:

HMG to subsidise a private-sector scheme, providing an exchange-rate hedging mechanism over 10 years.

ANNUAL COST:

In 1993/94:

In 1996/97:

[Treasury to suggest basis

for calculation?]

In 2010/11:

Other Variables

Treasury to explain their thinking on date to start making payments.

ats.J

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