XN000022-1977-04-23 — Page 2

SATURDAY, APRIL 23, 1977

H.K. TO CONTRIBUTE TO ADB TECHNICAL ASSISTANCE SPECIAL FUND ******

THE HONG KONG GOVERNMENT WILL, SUBJECT TO THE APPROVAL OF THE LEGISLATIVE COUNCIL, SUBSCRIBE TO A CAPITAL INCREASE OF THE ASIAN DEVELOPMENT BANK AND CONTRIBUTE US$ 100,000 TO ITS TECHNICAL ASSISTANCE SPECIAL FUND.

THIS WAS ANNOUNCED TODAY (SATURDAY) BY THE FINANCIAL SECRETARY, MR. PHILIP HADDON-CAVE, AT THE TENTH ANNUAL MEETING OF THE BOARD OF GOVERNORS OF THE ADB IN MANILA.

HE RECALLED THAT HE HAD CAST HIS VOTE IN FAVOUR OF A RESOLUTION WHICH WAS ADOPTED BY THE BOARD OF GOVERNORS IN OCTOBER 1976 AUTHORISING A SECOND GENERAL INCREASE IN THE SUBSCRIBED CAPITAL STOCK OF THE BANK.

+SUBJECT TO THE APPROVAL OF THE LEGISLATIVE COUNCIL WHICH I THINK WILL BE FORTHCOMING, THE HONG KONG GOVERNMENT WILL PARTICIPATE IN THIS CAPITAL INCREASE AND SO REMAIN A FULLY PAID UP MEMBER.

J

+AND AS HONG KONG'S FINANCIAL SECRETARY, I CAN ALSO SAY THAT WE SHALL CONTINUE TO SUBSCRIBE, WHENEVER WE CAN, TO THE BANK'S SHORT TERM BOND ISSUES,+ HE SAID,

REFERRING TO THE BANK'S PROGRAMME OF TECHNICAL ASSISTANCE TO DEVELOP ING MEMBER COUNTRIES, PARTICULARLY FOR PROJECT PREPARATION, MR. HADDON-CAVE SAID THE IMPORTANCE OF THIS PROGRAMME WAS UNDENIABLE AND ADDED, I AM PLEASED TO ANNOUNCE, AGAIN SUBJECT TO THE APPROVAL OF THE LEGISLATIVE COUNCIL, THAT THE HONG KONG GOVERNMENT WILL, THIS FISCAL YEAR, MAKE A CONTRIBUTION OF US$ 100,000 TO THE TECHNICAL ASSISTANCE SPECIAL FUND.+

+THIS CONTRIBUTION WILL NOT BE TIED, BUT I WOULD HOPE THAT THE EXPERTS EMPLOYED ARE DRAWN, WHENEVER POSSIBLE, FROM DEVELOPING MEMBERS COUNTRIES OF THE REGION.+

THE FINANCIAL SECRETARY WAS GRATIFIED TO LEARN THAT ONE OUTCOME OF THE GENERAL REVIEW OF THE BANK'S FINANCIAL POLICIES SOME WEEKS AGO WAS THE ABOLITION OF THE DIFFERENTIAL INTEREST RATE CHARGED ON LOANS TO HONG KONG AND SINGAPORE.

HOWEVER, HE SAID THAT THE MODIFIED APPROACH OF SHORTER MATURITY PERIODS, AT A GIVEN RATE OF INTEREST, LACKS LOGIC ALSO, BUT IT IS A LESS OFFENSIVE APPROACH AND, THEREFORE, MORE ACCEPTABLE+.

+NOW THAT THIS ISSUE OF OUR BORROWING RIGHTS HAS BEEN SETTLED, ONCE AND FOR ALL, AND MORE OR LESS SATISFACTORILY, I LOOK FORWARD TO HONG KONG BEING ABLE TO CALL UPON THE BANK, NOT FREQUENTLY BUT FROM TIME TO TIME TO PARTICIPATE IN THE DEVELOPMENT OF OUR INFRASTRUCTURE.+

/REFERRING TO.....