TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 64

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SECRET

Bo

(viii) The Government of Hong Kong would have the right to acquire a Bond in replacement of a Bond, or a part of a Bond, prematurely redeemed within the. Limits set out in sub-paragraphs (ii) and (iii) above. A Bond so acquired would have the same terminal date as that of the Bond prematurely redeemed. If, when the Hong Kong Government requests the issue of a new Bond, any Bonds shall have been redeemed in whole or in part (and shall not already have been re-issued under this paragraph), such new Bond shall be deemed (and pro tanto, where applicable) to be a re-issue of the redeemed Bonda; and in the same order as those Bonds were redeemed, or last redeemed.

(ix). Interest on the principal amount of any Bond, whenever issued, including o. Bond issued under the terms of sub- paragraph (viii) above in replacement of a Bond or a part of a Bond which has been prematurely redeemed, shall be calculated 'by deducting per annum from the current rate for loans of like length from the National Loans Fund. It will be paid in equal half-yearly Annbalmonta at intervals of six calendar months from t date of issue- or in the case of Bonds issued in replacement of those prematurely redeemed at interval of six calendar months from the date of issue with a final interest payment at maturity, calculated on a year of 365 days, for the period since the previous six-monthly interest payment.

4

(x) In the case of seven-year Bonds prematurely redeemed th

following scale of interest rates shall apply:

redeemed before 1 year from date of issue

% per annum below the current zate for 1

the National Loans Bund

Top Ik finu 1) masiu

Bonus redeemed between 1 and 2 years from date of issue

12

#1

tt

"

2 and 3

3 and 4.

4 and 5

5 and 6

6 and 7

11

Bonds redeemed at 7 years from date of issue

SECRET

1:125

*1.018

0.911

0.804

0.695 ·

0.589

0.482

0.375

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