XN000022-1992-11-04 — Page 5

لعيا

WEDNESDAY, NOVEMBER 4, 1992

THE

ΤΟ EFFECT THE ESTABLISHMENT OF THE AUTHORITY, CLAUSE 4 OF BILL EMPOWERS THE FINANCIAL SECRETARY TO APPOINT A MONETARY AUTHORITY.

LEGALLY, THE MONETARY AUTHORITY WOULD BE A PERSON RATHER THAN AN INSTITUTION.

BUT IN PRACTICE THE TERM "MONETARY AUTHORITY" WOULD BE REGARDED AS AN ORGANISATION SO THAT AN INSTITUTIONAL IDENTITY WOULD RE PROMINENT.

THE AUTHORITY WOULD BE FORMED BY MERGING THE OFFICE OF THE EXCHANGE FUND WITH THE OFFICE OF THE COMMISSIONER OF BANKING.

THE STAFF AND OPERATING COSTS OF THE AUTHORITY WOULD BE CHARGED DIRECTLY TO THE EXCHANGE FUND INSTEAD OF TO THE GENERAL REVENUE, THUS TAKING THE AUTHORITY OUTSIDE THE RESOURCE ALLOCATION CONSTRAINTS APPLICABLE TO OTHER PARTS OF GOVERNMENT.

THE FINANCIAL SECRETARY WOULD RETAIN ALL HIS STATUTORY UNDER THE EXCHANGE FUND ORDINANCE.

POWERS

ΤΟ THE

HE WOULD, HOWEVER, DELEGATE SUCH POWERS AS HE SAW FIT MONETARY AUTHORITY AND OTHER SENIOR STAFF EMPLOYED TO HELP THE MONETARY AUTHORITY.

SECRETARY,

THE AUTHORITY WOULD BE ACCOUNTABLE TO THE FINANCIAL WHO WOULD CONTINUE ΤΟ BE ADVISED BY THE EXCHANGE FUND ADVISORY COMMITTEE ON MATTERS RELATING TO THE CONTROL OF THE EXCHANGE FUND.

TO REFLECT THE WIDER AMBIT OF THE FUND AND THE INCREASED RESPONSIBILITY OF THE COMMITTEE, THE MEMBERSHIP OF THE COMMITTEE WOULD BE SUITABLY EXPANDED TO INCLUDE ADDITIONAL DISTINGUISHED MEMBERS OF THE FINANCIAL AND RELATED SECTORS.

THE ESTABLISHMENT OF THE MONETARY AUTHORITY WOULD NOT AFFECT ROLE OF THE DIRECTOR OF AUDIT WHO WOULD CONTINUE TO SUBJECT THE RESOURCES OF THE EXCHANGE FUND TO STRINGENT AND CONTINUOUS AUDITING.

THE

THE PUBLICATION OF THE EXCHANGE FUND'S ACCOUNTS IN JULY THIS YEAR HAS ENHANCED THE TRANSPARENCY OF THE EXCHANGE FUND IN THAT THE PERFORMANCE OF THE FUND IS NOW SUBJECT TO PUBLIC SCRUTINY, HE SAID.

то FURTHER ENHANCE PUBLIC ACCOUNTABILITY, IT IS INTENDED THAT THE AUTHORITY'S ANNUAL REPORTS SHOULD BE TABLED IN THE LEGCO, MR NENDICK SAID.

CLAUSE 3 OF THE BILL GIVES MONETARY POLICY OBJECTIVES OF HONG KONG.

STATUTORY RECOGNITION ΤΟ THE

IT PROVIDES THAT, APART FROM THE PRIMARY USE OF THE EXCHANGE FUND TO AFFECT THE HONG KONG DOLLAR EXCHANGE RATE, THE FINANCIAL SECRETARY MAY USE THE EXCHANGE FUND TO MAINTAIN THE STABILITY AND THE INTEGRITY OF THE MONETARY AND FINANCIAL SYSTEMS OF HONG KONG, WITH A VIEW TO MAINTAINING HONG KONG AS AN INTERNATIONAL FINANCIAL CENTRE.

/"I SHOULD