XN000022-1977-10-05 — Page 35

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WEDNESDAY, OCTOBER 5, 1977

PUBLIC ACCOUNTS COMMITTEE WILL BE SET UP SOON

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THE GOVERNOR, SIR MURRAY MACLEHOSE SAID TODAY THE FORMALITIES FOR THE ESTABLISHMENT OF A PUBLIC ACCOUNTS COMMITTEE PROPOSED BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH EARLY THIS YEAR, WILL BE COMPLETED EARLY IN THIS LEGISLATIVE COUNCIL SESSION.

SIR MURRAY SAID THIS WILL ENABLE THE NEW PROCEDURES TO BE INTRODUCED BY THE TIME THE DIRECTOR OF AUDIT SUBMITS HIS REPORT FOR THE FINANCIAL YEAR 1977/78.

HE DESCRIBED THIS DEVELOPMENT AS A SIGNIFICANT STEP FORWARD IN STRENGTHENING THE FACILITIES AT THE DISPOSAL OF THE LEGISLATIVE COUNCIL TO ENGUIRE INTO THE FINANCIAL ACTIVITIES OF THE GOVERNMENT.

DEVELOPMENTS PLANNED FOR MONETARY AFFAIRS BRANCH

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TWO FURTHER DEVELOPMENTS ARE PLANNED FOR THE MONETARY AFFAIRS BRANCH TO CENTRAL ISE AND CONCENTRATE CONTROL AND ADMINISTRATION OF THE GOVERNMENT'S FINANCIAL AFFAIRS, THE GOVERNOR, SIR MURRAY MACLEHOSE SAID TODAY.

THE FIRST IS THE TRANSFER TO THE MONETARY AFFAIRS BRANCH OF TREASURY FUNCTIONS CONNECTED WITH THE SUPPLY OF NOTES AND COINS TO THE BANKING SYSTEM, HE SAID,

+THE OTHER WILL RESULT IN THE EXCHANGE FUND TAKING OVER HONG KONG DOLLAR ASSETS OF THE GENERAL ACCOUNT, OTHER THAN THOSE REQUIRED FOR DAY TO DAY BUSINESS.

+THE EXCHANGE FUND WILL THEN EFFECTIVELY BECOME BANKER TO THE GOVERNMENT, HE SAID.

SIR MURRAY POINTED OUT THAT WHEN THESE MOVES HAVE BEEN COMPLETED ALL OF WHAT MAY BE DESCRIBED AS THE CENTRAL BANK ING FUNCTIONS PRESENTLY CARRIED OUT BY THE GOVERNMENT AND ALSO THE CONTROL AND MANAGEMENT OF ALL THE GOVERNMENT'S FINANCIAL ASSETS, WILL HAVE BEEN LOCATED IN THE MONETARY AFFAIRS BRANCH UNDER THE DIRECTION OF THE SECRETARY FOR MONETARY AFFAIRS WHO IS RESPONSIBLE TO THE FINANCIAL SECRETARY.

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