continuing buoyancy of the economy is producing
a steady increase in the exchange reserves of the
commercial banks and although we have not been
-
The
told so it is possible that in the present state
of currency uncertainties there may be a rush
taking place for the cover of the guarantee.
Fund's borrowing limit may thus soon be reached
and Hong Kong has asked urgently to amend the
million
limit to HK3,500/at least or preferably to
million
HK$4,000 Because the normal legislative process
might take too long the Financial Secretary has
asked if he may exceed the limit administratively.
Last November the Hong Kong authorities did in
fact anticipate HMG's approval of the increase in
the borrowing limit to HK$3,000 million and bought
Sterling from the commercial banks in excess of
what was then their legal authority.
9. Hong Kong's latest request for an increase
in the Fund's borrowing limits has had to be
refused in the absence of the satisfactory safe-
guards mentioned earlier in this note. The
Financial Secretary is disturbed by this refusal
and thinks that it will be embarrassing for
political as well as monetary reasons if he is
forced to reveal that HMG are using reserve powers
to prevent an increase in borrowing.
10. There the matter resto al pisszat.
Mi Fogarty, Treasures Referentation in S. E. Aria
ния
Кая
is due to pag Hong Kong
a visit soon & may will be there at the same time
as
Athe
Ministe. Its will be discussing this highly Contactions question with his John Cospettiauto.
NOTHING TO BE WRITTEN IN THIS MARGIN
No comments yet.
Private notes are available after approval.