TNAG-0103-FCO40-139-Briefs-and-background-notes-for-Lord-Shepherd-1967 — Page 34

TE USE OF HONG KON RESERVES

Present Level of Government Reserves

Government reserves at the end of farch, 1967, were

as follows:-

H.A zillion

£ million

Ceneral revenue balance

710.2

44.1

4

Revenus Equalisation Fund

130.0

8.6

Exabange Fund aurylus*

440.0

27.5

Balance of Development Loan Fund

!

33.0

2.1

Total

1321.2

82.6

Estimated as at 30th June 1967.

This level of reserves is equivalent to 8.7 months raveme on

the 1966/67 level.

2.

In addition to the above reserves, the Colony has poten-

tial reserves in its Exchange Fund.' If the external hacking

for the Fund ware reduced to 70%, sone IX./000 m. (£50 m.)

should be made available.

3.

Fossible Futuro Cladus on Rosarves

(a) Budzoti Hong Kong normally has a surplus of revenue

over current and capital expenditure. In 1966/67

there was an overell surplus of 1211.7 ». (£0.7 m.).

Revere was HKÁ 1818 m. (£113,6 m.); expenditure was HX $1806 m. (2112.8 m.). Över several of the past few

years Government has estimated for a deficit, which in

the event had not accurred. Thus in 1966/67 the

original ostimates provided for a deficit of Hố 104 m.

(£6.5 m.).

Forecasts which have been made for the next quinquen-

nium suggest a cumulative deficit on current and capital

account, Estimates by the Hong Kong Government suggest

a cumulative deficit or 107662 m. (241.4 m.) over the

period 1966/67 – 1570/71. An International Bank team

put the cumulative defioit at 18764 m. (£47.7 m.).

Part of the discrepancy is due to different assumptions

lot