SOVERMENT HOUSE RONG KING..

FRI JO NOV

CONFIDENTIAL

23.1-

(b)

The term "Crown

Agents"

should be deleted from all

provisions in cap. 72 (see

above).

determine

The Secretary for

paras.7(b) and (c)

the Treasury will

on

policy whether

an

authorized agent

is

needed to substitute the place of Crown Agents in the

Ordinance, and what further legislative amendments

are required when Hong Kong can no longer take

advantage of the provisions of the Colonial Stock

Acts, 1877 to 1948.

(c)

The term "Crown Agents" should be deleted from Caps.

75 and 77 respectively (see paras.7 (d) and (e)

above). The Policy Branches concerned will be asked

comment on whether the financial arrangements

prescribed by Caps. 7:5 and 77 should be retained

to

after 1997.

(a)

Tentatively, the Secretary for Financial

proposes to amend s.11(2) of Cap. 70 to read

Services

"The bank shall at all times keep deposited

with trustees appointed by the Financial

Secretary securities, approved by the Financial

Secretary, not less in value than the said sum

of $60 million."

Since Cap. 70 is a private ordinance,

the final

decision will rest with the Hong kong and Shanghai

Bank after it clears such decision

Covernment.

CONFIDENTIAL

with the

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