CONFIDENTIAL

PART I

FINANCE

16

INTRODUCTION

The Financial Secretary, with the assistance of the Secretary for Monetary Affairs and the Director of Accounting Services, will be responsible for :

(a)

the maintenance of reserves of bank notes and of coinage;

(b)

the payment of essential expenditure; and

2.

(c) the maintenance of limited banking

facilities.

He will employ the minimum staff necessary to secure these aims, consistent with the maintenance of reasonable control over expenditure and security against fraud.

GENERAL METHOD

3.

Normal procedures will continue as far as

practicable.

Banknote and Coinage Reserves

4.

The note-issuing banks will maintain reserves of notes. The monthly return of notes in stock and on order sent by the note-issuing banks to the Monetary Affairs Branch will be reviewed and the Secretary for Monetary Affairs will advise the banks if at any time the amounts in stock and on order are considered insufficient to provide the reserves required.

CONFIDENTIAL

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