10
Wednesday, February 28, 1973
HONG KONG'S OVERSEAS RESERVES
Financial Position Weakened By External Factors
The Financial Secretary, the Hon. C.P. Haddon-Cave, today estimated
that Hong Kong's fiscal reserves at the end of this, financial year would
amount to $2,831 million, a drop of $998 million on the position at
March 31, 1972.
Presenting his Budget to the Legislative Council, he noted that
$500 million for the Mass Transit Fund was to be charged against this
year's revenue.
The estimate of Hong Kong's fiscal reserves, Mr. Haddon-Cave said,
represented 54 per cent of estimated expenditure in 1973/74 or 61 per cent
of the unspent balance of approved Public Works Non-Recurrent projects.
"I do not regard these much reduced percentages with composure,
he added.
The Financial Secretary said that "external factors beyond our
control" weakened Hong Kong's financial position during 1972.
•
Hong Kong's fiscal reserves at April 1, 1972 amounted to $3,829
million, of which about $1,100 million was held with bankers in Hong Kong
and the balance was held abroad, mainly in sterling investments and formed
part of Hong Kong's overseas reserves.
The Financial Secretary said that "the gilt edged market weakened
in the middle of 1972 and prices have not yet recovered to the relatively
high levels ruling at the end of March,"
This general