TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 103

CONFIDENTIAL

in London of April 1974 and each calendar month thereafter up to and including the last working day in London of December 1974, provided that if under the previous Declaration advices in respect of 24 September 1973 or the last working day in London of March 1974 were provided on a basis other than that set out in this Declaration, revised advices in respect of those days will be required.

(3) For all purposes of this Declaration:

(a)

conversions between currencies must be made at

market exchange rates on each reporting day;

(b) securities, whether denominated in sterling or in other currencies, must be valued at market prices on each ` reporting day; Treasury bills and Certificates of Deposit

may, however, be valued by adding to their cost the interest accrued up to and including the reporting day;

(c) overdrafts and short-term advances in sterling must be netted against official sterling reserves and total official external reserves. Overdrafts and short-term advances in other currencies must be netted against total . official external reserves; and

(a) total official external reserves and official sterling reserves held on 24 September 1973 will be deemed to exclude sterling used subsequently to compensate banks in Hong Kong under the Exchange Fund Guarantee Scheme.

Notification of Effective Rate

7. The Bank of England will advise the Government of Hong Kong of the cumulative average effective depreciation of sterling at the end of each month in the period covered by this Declaration.

Entry into Effect and Duration

8. The provisions of this Declaration will come into effect

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