XN000022-1979-04-02 — Page 2

MONDAY, APRIL 2, 1979

GOVERNOR DUE BACK FROM CHINA ON WEDNESDAY

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THE GOVERNOR, SIR MURRAY MACLEHOSE WILL RETURN TO HONG KONG ON WEDNESDAY MORNING AFTER AN OFFICIAL VISIT TO CHINA.

SIR MURRAY WILL TRAVEL ON THE INAUGURAL EXPRESS THROUGH TRAIN FROM CANTON, SCHEDULED TO ARRIVE AT 11.26 A.M.

HE WILL BE ACCOMPANIED BY LADY MACLEHOSE, SIR YUET-KEUNG KAN, SENIOR UNOFFICIAL MEMBER OF THE EXECUTIVE COUNCIL, LADY KAN, DR. DAVID WILSON, POLITICAL ADVISER, AND MRS. WILSON.

NOTE TO EDITORS:

A PHOTOGRAPHIC FACILITY WILL BE ARRANGED FOR THE MEDIA TO COVER SIR MURRAY'S ARRIVAL ON THE INAUGURAL EXPRESS THROUGH TRAIN FROM CANTON ON WEDNESDAY.

MEDIA REPRESENTATIVES WHO WISH TO MAKE USE OF THE FACILITY ARE REQUESTED TO ASSEMBLE NEAR THE ENQUIRY COUNTER OF KOWLOON-CANTON RAILWAY'S KOWLOON STATION, HUNG HOM, AT 11 A.M. SHARP ON WEDNESDAY. G.I.S. STAFF WILL BE PRESENT TO ASSIST MEDIA REPRESENTATIVES.

THE GOVERNOR IS EXPECTED TO GIVE A PRESS CONFERENCE IN THE G. I.S. THEATRE, BEACONSFIELD HOUSE, FIFTH FLOOR, SOME TIME ON FRIDAY (APRIL 6).

FEBRUARY MONEY SUPPLY ****

THE MONEY SUPPLY ON BOTH DEFINITIONS (M1 AND M2) FELL IN FEBRUARY ACCORDING TO THE MONEY SUPPLY STATISTICS FOR THE MONTH PUBLISHED TODAY (MONDAY) TOGETHER WITH THE FIGURES FOR BANKS AND DEPOSIT-TAKING COMPANIES.

AND A DEFINITE SLOWING DOWN IN THE LONGER-TERM RATE OF GROWTH OF THE MONEY SUPPLY IS NOW APPARENT.

FOUR MORE LICENSED BANKS BEGAN OPERATING IN FEBRUARY WHILE TWO DEPOSIT-TAKING COMPANIES CAME OFF THE REGISTER.

M1 (NOTES AND COIN IN CIRCULATION AND DEMAND DEPOSITS AT LICENSED BANKS) FELL BY $1,412 MILLION (SIX PER CENT) IN FEBRUARY TO $22,099 MILLION, WHICH WAS 22.4 PER CENT ABOVE FEBRUARY 1978.

M2 (M1 PLUS TIME AND SAVINGS DEPOSITS) FELL BY $115 MILLION (0.2 PER CENT) TO $75,982 MILLION, WHICH WAS 24.6 PER CENT ABOVE FEBRUARY 1978.

AS USUAL THERE WAS A SHARP REDUCTION IN THE CURRENCY CIRCULATION FROM THE LUNAR NEW YEAR PEAK AT THE END OF JANUARY.

THE ANNUAL GROWTH RATE OF M2, AT 24.6 PER CENT, WAS LESS THAN IN JANUARY (WHICH WAS DISTORTED BY THE DIFFERENT TIMING OF LUNAR NEW YEAR IN 1978 AND 1979).

JON A