(885363) Dd. 896639 1,000M 8/71 St.S.
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HONG KONG'S STERLING ASSETS
1. At the end of 1971, Hong Kong's sterling
}
assets stood at £770 million
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an increase of
£88 million since September 1971.
2. In his budget speech on 1 March, the Financial
Secretary said that "Hong Kong had to give thanks
to the gilt edged market and the careful management
of the Colony's portfolio by the Crown Agents in
London and the Accountant General, acting within
the broad guidelines laid down by the Exchange
Fund Advisory Committee" for the increase of
HK$1023 million in the Colony's reserves over
the last year. Despite this however some
Unofficial Members of the Legislative Council in
subsequent debate urged that part of Hong Kong's
reserves should be diversified away from London.
Mr Q W Lee had much to say on the matter and
Mr Salmon suggested that "diversification of the
Colony's reserves would give Hong Kong a
bargaining position on economic issues elsewhere".
Extracts from their speeches are attached.
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