19
(a)
of the respective quality control systems adopted by the territory's three note-issuing banks in the bank notes printing process;
(b)
whether the Government monitors such quality control systems; and
(c)
Reply:
whether the Government has approached the note-issuing bank concerned to find out the cause for the misprint for the notes and to suggest ways for improvement?
I have been advised that the misprinted banknotes referred to in the question are possibly notes of the Hongkong and Shanghai Banking Corporation Limited printed by a note-printer in the United Kingdom in the early 1980s. Hongkong Bank is aware of the existence of these notes which do occasionally turn up in note-collectors' shops.
Since 1984, all banknotes issued by the three note-issuing banks are printed by Thomas De La Rue (HK) Ltd. in Tai Po. Compared with its United Kingdom counterpart, the Hong Kong printer has installed much more sophisticated machines than those available in the early 1980s. Note-numbering, for example, is now entirely computerised. The printer also has strong commitment to quality with a quality assurance system measuring up to international standards. All the finished notes are checked rigorously with stringent security and material audit systems in place to guard against misprinting. Even if misprinted notes are discovered, they will be destroyed immediately and not issued.
The Hong Kong Monetary Authority has frequent contacts with the note- issuing banks and with the note-printer to ensure that the quality and security of printing are up to international standards. There are also regular meetings with the printer management and inspections to the plant. Members are also aware that recently we have concluded an agreement with De La Rue plc to acquire its Hong Kong operations. We are committed to maintaining these high standards of printing and quality assurance after the acquisition while continuing to draw on technical assistance from the company.
We are not aware of any case of misprinted banknotes since the establishment of the note-printing plant in Hong Kong in 1984. We are certainly not complacent and will continue to review constantly ways in which the control system can be further improved.
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