TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 177

XCS(73)9

SECRET

Statement I:

Position at 24th September 1973

(1) Government:

(a) Sterling Assets

£mn

Exchange Fund

234

General Account

106

Coinage Fund

13

Rehabilitation Loan Fund

3

Fiduciary Issue

10

Total

366

(b)

Non-Sterling Assets

Exchange Fund

General Account

Gold

44

37

1

Total

82

(2) Local Banks' Deposits with

Exchange Fund

220

(3) Total Official Sterling Reserves

(i, e. (1)(a) + (2))

586

(4)

Total Official External Reserves

(i. e. (1) + (2))

668

Minimum Sterling Proportion

(i. e. (3) ÷ (4) x 100)

87.7%

Notes:

(i)

(ii)

(iii)

(iv)

(v)

(vi)

All sterling securities are valued at normal valuation conventions on the basis of the position at 31st August 1973. No significant change in book values is, however, anticipated,

Non-sterling securities have been revalued at mid- market prices on 24th September 1973,

Gold has been valued at the official price US$42, 22 per fine ounce.

All non-sterling assets (cash and investments) have been converted to sterling at mid-closing rates on 24th September 1973 supplied by the Bank of England, Local banks' deposits stood at £481 million at 6th July 1972; £425 million at 31st December 1972; and £295 million at 31st July 1973,

Total Official External Reserves does not include the non-sterling assets of the banking system, including their open foreign currency positions.

SECRET