(d)
As at present foreseen need for floating
loan for purpose of repaying J.C.F. advances
is not likely to arise for some considerable
time. It would not repeat not be necessary
to make reference in the Ordinance to advance
from J.C.F.
(As regards question of announcement on future of
Hong Kong exchange rate, I fear that announcement
on lines you propose, however carefully worded
to avoid appearance of a commitment to maintain
inevitably stable rate of exchange, will be interpreted as
such a commitment One possibility I have
considered is reference to the fact that H.MG.
have accepted on behalf of all Colonies, etc.,
the obligations regarding variations in exchange
rates laid down in the Bretton Woods Agreements
on the International Monetary Fund.'
The par
value of Hong Kong currency has now been
declared to the Fund as 1/3d and would only
be altered in accordance with the agreed rules
about alteration of exchange rates. It might
be possible to give this indication of stability
of Hong Kong exchange rate, but it would certainly
not be possible to go any further in that direction
140
that if
and
on that accon
world
ве
with t
inevitably repercussion if fat
any
were
tume
thông trong cái t
foreps to bary present rate I fear there 'se
thaft as commit even in parde Termo
ga
Can
be
Rossibility that- absence of suck
Annom
may y discourage
investors must,
I feel, be accepted.
and any public reference to this matter would have
to be accompanied by a clear statement that it
cannot be regarded in any way as a commitment to
maintain the existing exchange rate.
If you
think that something on these lines would help
I will go into the matter further.
with reference to suggestion at (b) above for a
sinking fund you may like to consider inclusion
in ordinance of provision permitting Government
to utilize sums provided for sinking fund to make
purchases of the loan stock. Use of this provision
would help Government to support the market in the
stock if that were necessary.
Sicer