XN000022-1997-01-15 — Page 59

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The Hong Kong Government is fully committed to the maintenance of the linked exchange rate system, as demonstrated by the track record in the past 13 years as well as our efforts to strengthen the monetary management system for the purpose of ensuring exchange rate stability. These include the introduction, in the past several years, of the Accounting Arrangements which allows the Exchange Fund to have effective control over the level of inter-bank liquidity; the Exchange Fund Bills programme which strengthens the Hong Kong Monetary Authority's (HKMA) ability to conduct open market operations; the Liquidity Adjustment Facility which enables the HKMA to influence short-term inter-bank interest rates. Recently, the HKMA has signed a series of bilateral repurchase agreements (involving the use of United States Treasury papers as collaterals) with eight central banks in the region to enhance further their co-operation in the efforts to maintain currency stability. There is now a high degree of credibility, both locally and internationally, on the Hong Kong Government's commitment and ability to maintain the link in the future.

Given that we have already met the requirements stipulated in Article 111 of the Basic Law and that the linked exchange rate is already a well-established system, we do not consider it necessary to introduce any new and separate legislation in respect of the exchange rate which, in any case, is not a matter for specific legislation in most other places.

End

Unemployed people in receipt of CSSA

Following is a question by the Hon Li Wah-ming and a written reply by the acting Secretary for Health and Welfare, Mrs Doris Ho, in the Legislative Council today (Wednesday):

Question:

It is reported that the number of recipients of unemployment assistance at the end of last year has risen by nearly 90 percent, compared to those at the end of the previous year. In this connection, will the Government inform this Council:

(a)

of the reasons for the substantial rise in the number of recipients of unemployment assistance whereas the unemployment rate last year, as released by the Census and Statistics Department, showed a continuous decrease; and