XN000022-1992-12-04 — Page 4

FRIDAY, DECEMBER 4, 1992

HE SAID THERE SHOULD BE SUITABLE CHECKS AND BALANCES.

CURRENTLY, ALL MAJOR POLICY AND OPERATIONAL ISSUES ARE CONSIDERED BY THE EXCHANGE FUND ADVISORY COMMITTEE CHAIRED BY THE FINANCIAL SECRETARY.

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"WITH THE ESTABLISHMENT OF THE HONG KONG MONETARY AUTHORITY, THE FINANCIAL SECRETARY INTENDS ADDITIONALLY TO SUBMIT THE BUDGETS OF THE AUTHORITY TO THE COMMITTEE FOR ITS CONSIDERATION, MR YAM SAID.

"THERE WILL ALSO BE CLOSE GUIDANCE AND MONITORING BY THE COMMITTEE THROUGH MONTHLY INSTEAD OF QUARTERLY MEETINGS, HE SAID.

"MEMBERSHIP OF THE COMMITTEE WILL ALSO BE SUITABLY EXPANDED. MORE EXPERTS IN THE FINANCIAL SECTOR WILL BE APPOINTED TO THE COMMITTEE. THE COMMITTEE WILL IN EFFECT OPERATE AS A MANAGING

BOARD," HE ADDED.

THE AUTHORITY WILL ALSO PUBLISH AN ANNUAL REPORT ON ITS ACTIVITIES AND THE REPORT WILL BE LAID BEFORE THE LEGISLATIVE COUNCIL.

"I WOULD LIKE TO MAKE A CLEAR COMMITMENT TO CONDUCTING THE AFFAIRS OF THE AUTHORITY IN AS OPEN AND FAIR A MANNER AS POSSIBLE. OUR MARKET OPERATIONS WILL ALSO BE AS TRANSPARENT AS POSSIBLE, AS LONG AS THEIR EFFECTIVENESS WOULD NOT BE UNDERMINED, MR YAM SAID.

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HE ALSO MADE IT CLEAR THAT THERE WAS NO INTENTION WHATSOEVER FOR THE CENTRAL BANK ROLES THAT WERE NOT CURRENTLY PERFORMED BY THE GOVERNMENT TO BE ASSUMED BY THE MONETARY AUTHORITY.

TURNING ΤΟ MONETARY POLICY, MR YAM ARGUED STRONGLY FOR MAINTAINING THE LINKED EXCHANGE RATE SYSTEM.

HE STRESSED THAT THE POLICY OBJECTIVE SHOULD BE EXCHANGE RATE STABILITY AGAINST A CURRENCY THAT WE ALL KNEW AND MAJORITY OF OUR EXTERNAL TRADES WERE DENOMINATED, INDIRECTLY, SO AS TO ENABLE HONG KONG TO MAXIMISE AND MINIMISE THE RISKS.

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JOINT LIAISON GROUP 25TH MEETING

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THE FOREIGN AND COMMONWEALTH OFFICE ANNOUNCED THIS (FRIDAY) MORNING THAT THE 25TH MEETING OF THE SINO-BRITISH JOINT LIAISON GROUP ON HONG KONG WILL TAKE PLACE IN HONG KONG PROM DECEMBER 8 TO 10.

THE BRITISH TEAM WILL BE LED BY THE SENIOR REPRESENTATIVE, ANTHONY GALSWORTHY,

MR

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THE OTHER MEMBERS OF THE BRITISH TRAN WILL BE MR NICHARL (SECRETARY FOR CONSTITUTIONAL AFFAIRS, HONG KONG), MR ALAN (COUNSELLOR, OFFICE OF THE BRITISH SENIOR REPRESENTATIVE, SINO-BRITISH JOINT LIAISON GROUT, HONG KONG), AND MR WILLIAM EHRMAN {POLITICAL ADVISER, HONG KONG).

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