XN000022-1987-03-11 — Page 33

WEDNESDAY, MARCH 11, 1987

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CALLING THE AMENDMENTS SENSIBLE AND STRAIGHT-FORWARD, MR MATHEWS SAID THE CROWN WOULD NO LONGER HAVE TO BE A PARTY.

+IF THE ATTORNEY GENERAL NEEDS TO INTERVENE IN THE PUBLIC INTEREST, THE RIGHT TO DO SO IS EXPRESSLY RESERVED. COSTS TO THE PUBLIC PURSE OR THE PRIVATE LITIGANTS INVOLVED WILL BE SAVED.+

HE ALSO POINTED OUT THAT THE BILL HAD THE SUPPORT OF THE JUDICIARY, AND THE LEGAL PROFESSION REPRESENTED BY THE BAR ASSOCIATION AND THE LAW SOCIETY.

MR MATHEWS SAID THAT AT THE COMMITTEE STAGE HE PROPOSED TO MOVE AN AMENDMENT TO DELETE THE NEW SECTION 3B(3) (4) (11) IN CLAUSE 4 OF THE BILL AS THERE WAS NO SYSTEM OF CAVEATS IN HONG KONG NOW AND THAT THIS PROVISION SERVED NO PRACTICAL PURPOSE.

DEBATE ON THE MOTION WAS ADJOURNED.

EXCHANGE FUND BORROWING LIMIT RAISED

*****

THE BORROWING LIMIT OF THE EXCHANGE FUND WAS INCREASED TODAY (WEDNESDAY) FROM $30 BILLION TO $50 BILLION AFTER A MOTION BY THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, WAS APPROVED BY THE LEGISLATIVE COUNCIL.

LAST REVISED IN 1981, THE BORROWING LIMIT WAS SET TO GOVERN THE TOTAL BORROWING BY THE EXCHANGE FUND FROM THE GENERAL REVENUE ACCOUNT AND VARIOUS FUNDS AND ALSO THE BORROWING BY THE FUND ARISING FROM MONEY MARKET OPERATIONS.

MOVING THE MOTION, MR JACOBS SAID: THE BULK OF THE GOVERNMENT'S ACCUMULATED BALANCES ON THE GENERAL REVENUE ACCOUNT AND IN THE VARIOUS FUNDS IS INVESTED BY THE TREASURY WITH THE EXCHANGE FUND AGAINST THE ISSUE BY THE FUND OF INTEREST-BEARING DEBT CERTIFICATES,+

AN ARRANGEMENT WAS ALSO MADE TO ENABLE THE EXCHANGE FUND TO CONDUCT MONEY MARKET OPERATIONS WITH A VIEW TO INFLUENCING THE LEVEL OF INTEREST RATES IN THE INTERBANK MARKET IN A WAY CONSISTENT WITH MONETARY POLICY OBJECTIVES.

/+AS AT