Thursday, March 16, 1972
9
TIME TO DIVERSIFY STERLING RESERVES: THE HON Q.W. LIE
U.K. Guarantee Changing In Character
The Hon. Q.W. Lee said today the time "is coming nearer and
nearer" for Hong Kong to diversify its reserves in currencies other than
Sterling.
He was one of the eight Unofficial Members who spoke when the
debate on the Budget was resumed in the Legislative Council.
Mr. Lee was commenting on Hong Kong's reserves position and the
changing character of the United Kingdom Sterling guarantee,
There had not been much dispute that Hong Kong should have
reserves, he said.
"It is only their size and where they should be invested that
have always been controversial," he added.
The Colony's social, economic and political progress dictated that
more and more should be spent on new developmental and social projects such
as the desalting plant, High Island water scheme, public assistance,
technical education and loans for small industries.
In addition, one day a decision might be reached to go ahead with
the Mass Transit System, Social Security, National Health and Free Secondary
Education, he said.
It was therefore clearly logical that Hong Kong had to have
substantial reserves in order to be prepared to deal with the situation
that from 1974/75 onwards budget forecasts would show deficits, he added.
/He recalled