XN000022-1996-05-01 — Page 80

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Reply:

Hong Kong dollar bank notes are legal tender in Hong Kong. The acceptance by a person of Hong Kong dollar bank notes in a place outside Hong Kong, whether for conversion into local currency or in settlement of a debt denominated in that currency, is a commercial decision by the person concerned. It is not unusual that bank notes issued by one place are not accepted in foreign countries. Like other governments, the Administration has no authority to compel a person in foreign countries to accept its domestic currency for such purposes.

The Hong Kong Monetary Authority (HKMA) has not received any report on incidents referred to in the question. The HKMA and the note-issuing banks have been active in explaining to those who are interested, both local and overseas, the arrangements for the issue of Hong Kong dollar bank notes, including the US dollar backing for such notes in the Exchange Fund and the issue of Hong Kong dollar bank notes by the Bank of China since May 1994, and the procedures adopted by note- issuing banks for the return of Hong Kong dollar bank notes for value.

We are aware that the three note-issuing banks, including the Bank of China, have jointly produced a brochure illustrating the types of Hong Kong bank notes in issue. These brochures are distributed to banks abroad.

End

Proposal to bring Stock Exchange under bribery law

Following is a question by the Hon Emily Lau and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):

Question:

With regard to the Independent Commission Against Corruption (ICAC)'s proposal to bring the Stock Exchange of Hong Kong Limited (the Exchange) within the jurisdiction of the Prevention of Bribery Ordinance, will the Government inform this Council:

(a)

of the reasons for the ICAC putting forward such a proposal at this time;

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