XN000022-1975-01-22 — Page 19

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WEDNESDAY, JANUARY 22, 1975

HONG KONG'S OVERSEAS FUNDS

DEPOSITED WITH TEN INSTITUTIONS

HONG KONG NOW EMPLOYS TEN INSTITUTIONS, INCLUDING THREE CENTRAL BANKS, AS DEPOSITORIES AND CUSTODIANS FOR ITS OVERSEAS FUNDS AND ASSETS WHICH AMOUNT AT CURRENT MARKET VALUE TO MORE THAN US$1,000 MILLION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON- CAVE TOLD THE LEGISLATIVE COUNCIL TODAY.

THE CROWN AGENTS WITH WHOM ALL HONG KONG'S OVERSEAS FUNDS AND ASSETS WERE DEPOSITED IN DECEMDER 1971, ARE ONLY ONE OF THESE TEN.

IN REPLY TO A QUESTION DY THE HON. R.H. LODO, THE FINANCIAL SECRETARY SAID HE COULD NOT DISCLOSE THE AMOUNT OF FUNDS THE GROWN AGENTS WERE CURRENTLY MANAGING FOR HONG KONG DECAUSE TO DO SO WOULD DE +A BREACH OF CUSTOMARY COMMERCIAL CONFIDENTIALITY. *

HE SAID THAT MR. LOBO'S QUESTION MIGHT HAVE BEEN PROMPTED BY DOUBTS ADOUT THE SAFETY OF THE FUNDS DEPOSITED WITH THE GROWN AGENTS.

TO REMOVE THESE DOUDTS, HE QUOTED PART OF A STATEMENT MADE BY THE MISISTER FOR OVERSEAS DEVELOPMENT IN THE HOUSE OF COMMONS IN DECEMBER LAST YEAR.

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IN DESCRIBING THE FINANCIAL ARDANGEMENTS WHICH HAD BEEN MADE TO ASSIST THE CROWN AGENTS, THE MINISTER SAID: THESE ARRANGEMENTS WILL DEMONSTRATE DEYOND ALL DOUBT TMT THE GOVERNMENT STANDS BEHIND THE CROWN AGENTS SO THAT THE POSITION OF ALL DEPOSITORS IS FULLY SAFEGUARDED.+

MR. HADDON-CAVE SAID OF COURSE, TO THE EXTENT THAT THE CROWN AGENTS ACT IN A CUSTODIAL AND MANAGEMENT ROLE FOR PART OF OUR SECURITIES PORTFOLIO, THEIR OWN FINANCIAL POSITION IS NOT RELEVANT.❖

HE ADDED, MOWEVER, THAT THE HONG KONG GOVERNMENT HAD NO COMPLAINT ABOUT THE WAY IN WHICH THE CROWN AGENTS HAD, OVER THE YEARS, CARRIED OUT ITS INSTRUCTIONS RELATING TO THE MÅNAGEMENT OF THIS PORTFOLIO.

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