XN000022-1972-03-01 — Page 32

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Wednesday, March 1, 1972

HONG KONG IN STRONG FINANCIAL POSITION

Enters 1972-73 With Total Reserve of $3,923 Million

The Financial Secretary, the Hon. C.P. Haddon-Cave, said today

that Hong Kong enters 1972-73 in a "strong position" with a total

reserve of $3,923 million.

Presenting his Budget in the Legislative Council, he said

this year's surplus should be of the order of 3700 million, bringing

the balance in the General Revenue Account to about $2,900 million.

+

An estimated $110 million for the appreciation of investments

and a further $913 million for the free surplus in the Exchange Fund

added to that figure of $2,900 million should bring the Colony's total reserve

position at April 1, 1972 to 63,923 million, he explained.

The Financial Secretary pointed out that the surplus available

for transfer had increased from $270 million when the accounts for 1970

were closed to an estimated 913 million at the end of 1971.

He said this was "thanks to the strength of the gilt edged market

and the careful management of our portfolio by the Crown Agents in London and the Accountant General acting within the broad guidelines laid down by the Exchange Fund Advisory Committee, one of the many advisory committees working quietly behind the scenes to provide the Administration with

expert advice".

Hong Kong's estimated reserve position at the end of the current financial year of $3,923 million represents an advance of $1,448 million

on the position a year ago when it was $2,475 million.

This figure