CONFIDENTIAL
HKC 310/3
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 1894
OF 160948Z JULY 92
INFO PRIORITY PEKING, UKREP JLG HONG KONG
TW 1802
TOP COPY O DIST?
см
مر
28
027317
MDLIAN 9460
HKSARG LAND FUND: DISCLOSURE OF ANNUAL ACCOUNTS: PRESS REPORT
SUMMARY
1. FOLLOWING THE DISCLOSURE YESTERDAY BY THE FINANCIAL SECRETARY OF THE SIZE OF THE EXCHANGE FUND, SUN YANHENG (SENIOR CHINESE REPRESENTATIVE OF THE LAND COMMISSION) TOLD THE PRESS THAT THE
CHINESE WERE GOING TO DISCLOSE THE ACCOUNTS OF THE LAND FUND.
DETAIL
2. LOCAL PAPERS REPORTED PROMINENTLY TODAY (16 JULY) THE REMARKS
GIVEN BY SUN YANHENG TO REPORTERS OF THE CHINA NEWS SERVICE YESTERDAY. HE SAID QUOTE WE UNDERSTAND FULLY HONG KONG PEOPLE'S
INTEREST ABOUT THE LAND FUND. FOR THIS REASON, THE TRUSTEES HAD CONSIDERED EARLIER, WHEN THE FUND WAS ESTABLISHED, TO MAKE PUBLIC THE FUND'S ANNUAL ACCOUNTS. HOWEVER, WE HAVE ADOPTED A CAUTIOUS APPROACH OVER THIS MATTER IN VIEW OF ITS LIKELY IMPLICATIONS ON THE EXCHANGE FUND. SINCE THE EXCHANGE FUND HAS NOW BEEN DISCLOSED, WE CONSIDER THE TIME IS ALSO RIPE FOR DISCLOSING THE LAND FUND ACCOUNTS. THE ACCOUNTING YEAR OF THE LAND FUND ENDS ON
31 MARCH EACH YEAR AND IT TAKES 6 MONTHS FOR THE PREPARATION AND
AUDITING OF THE ANNUAL ACCOUNTS. THE ANNUAL ACCOUNTS FOR THE
91/92 FINANCIAL YEAR WILL THEREFORE BE ANNOUNCED IN END OCTOBER OR NOVEMBER UNQUOTE.
COMMENT
3.
THIS IS AN ENCOURAGING DEVELOPMENT. NO DOUBT IT HAS BEEN PARTLY PROMPTED BY OUR DECISION TO MAKE PUBLIC THE EXCHANGE FUND ACCOUNTS. BUT IT APPEARS TO BE A STEP ON THE PART OF THE CHINESE SIDE TO INCREASE THE FUND'S TRANSPARENCY WHICH, YOU WILL RECALL, WAS ONE OF THE CONCERNS WE EXPRESSED TO THEM IN OUR NEGOTIATIONS ON THE LAND FUND.
PATTEN
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