23
WEDNESDAY, FEBRUARY 28, 1979
$453 MILLION FOR AUXILIARY FORCES AND DEFENCE
COST CONTRIBUTION ****
THE DRAFT ESTIMATES FOR 1979-80 PROVIDE $453 MILLION FOR THE ROYAL HONG KONG AUXILIARY AIR FORCE, ROYAL HONG KONG REGIMENT (THE VOLUNTEERS), THE AUXILIARY MEDICAL SERVICE, CIVIL AID SERVICE AND MISCELLANEOUS MEASURES.
THE FINANCIAL SECRETARY, THE HON, PHILIP HADDON-CAVE, SAID TODAY (WEDNESDAY) THE PROVISION WAS MAINLY FOR THE HONG KONG GOVERNMENT'S 75 PER CENT SHARE, UNDER THE DEFENCE COSTS AGREEMENT OF THE COST OF THE GARRISON AND FOR THE FULL COST OF CERTAIN MAJOR REPROVISIONING WORKS, BOTH UNDER AND SUBSEQUENT TO THE AGREEMENT.
HE SAID THAT LAND (33 ACRES) AT SHAM SHUI PO CAMP HAD BEEN RELEASED AND WORK WAS DUE TO START ON A FURTHER MAJOR REPROVISION ING TO ENABLE THE REMAINDER OF SHAM SHUI PO CAMP (12 ACRES), LEI YUE MUN CAMP (73 ACRES) AND BOWR ING CAMP (10 ACRES) TO BE RELEASED BY 1983.
+ALTHOUGH NOT REFLECTED IN THE DRAFT ESTIMATES BECAUSE NO EXPENDITURE WILL BE REQUIRED IN 1979-80, FINANCE COMMITTEE HAS APPROVED FUNDS FOR THE REPLACEMENT OF THE FIVE NAVAL PATROL CRAFT AT AN ESTIMATED COST TO THE HONG KONG GOVERNMENT OF $200 MILLION, THE FINANCIAL SECRETARY SAID.
+THE REPLACEMENTS WOULD BE PARTICULARLY USEFUL IN A REPEAT OF THE CURRENT SITUATION ON ILLEGAL IMMIGRANTS AND REFUGEES, HE ADDED.
BILL PROPOSED TO AMEND EXCHANGE FUND ORDINANCE
****
THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE SAID TODAY (WEDNESDAY) HE WOULD PROPOSE TO INTRODUCE, SUBJECT TO EXECUTIVE COUNCIL ADVICE, A BILL TO AMEND THE EXCHANGE FUND ORDINANCE.
HE EXPLAINED THAT FOR THE PURPOSES OF THE BANKING ORDINANCE, SHORT TERM HONG KONG DOLLAR DEPOSITS OF THE EXCHANGE FUND SHALL BE DEEMED TO BE DEPOSITS FROM A BANK (AND SO SUBJECT TO THE 100 PER CENT LIQUID ASSETS REQUIREMENT), WHILE LONG TERM DEPOSITS OF THE FUND WILL CONTINUE TO BE REGARDED AS DEPOSITS FROM A NON-BANK CUSTOMER SUBJECT ONLY TO THE 25 PER CENT LIQUID ASSETS REQUIREMENT.
+THIS WILL HAVE THE IMMEDIATE EFFECT OF INCREASING THE MINIMUM LIQUID ASSETS WHICH HAVE TO BE HELD BY THE BANKS CONCERNED AGAINST THESE DEPOSITS, MR. HADDON-CAVE SAID.
FURTHERMORE, HE SAID,
HE SAID, THE IMPACT OF THE REQUIREMENT CAN EASILY BE ALTERED BY CONVERTING PART OR ALL OF THE EXCHANGE FUND'S LONG TERM DEPOSITS, AT 25 PER CENT, INTO SHORT TERM DEPOSITS AT 100 PER CENT OR VICE VERSA.
/ANY STIFFENING