TNAG-0456-FCO40-521-Reports-and-accounts-of-Exchange-Fund-of-Hong-Kong-1974 — Page 23

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Although printing and other expenses in 1973 were lover than they were in 1972 this is not a reflection of lower prices or volume; but results mainly from a decision by one of the note issuing banks to claim reimbursement of these expenses as the bills are received rather than half yearly as in previous years. The change first took place in 1972 but 1973 is the first full year under the new

arrangement.

(ii) Administration expensesI

£1,078.37. OF

this sum £1,000 represents the management fee fixed at the meeting of the Exchange Fund Advisory Committee held 7th April 1966 and confirmed at the meeting held on 22nd May 1972. £78.37 was spent on printing and cuble charges. No charge is made for telex messages from Hong Kong.

Payments:

(111)

Exchange Fund Guarantee Schene - Adjustment £67,637,631.41. Of this sun £29,499,954.94 vas in respect of adjustment payments on £200.3 million vith- drawn from the scheme at various dates between 1st January 1973 and 24th September 1973. These withdrawals vère made at an average rate of HK$12,810 = £1. The balance, £38,197,676.47 represents adjustment payments made following the vinding up of the scheme. The rutes of exchange used for the purpose of calculating adjustment payments for vith- dravals made between 1st Jamary and 24th September 1973 vere based either on midmarket rates or the actual price at which the banks concerned sold sterling. The rate of exchange used for winding up adjustment payments was the middle merchant rate ($12.395 : £1) quoted by the Exchange Banks' Association on 24th Septembar 1973. Although the scheme provided for adjustment payments to be made in sterling, the banks were given the opportunity to have the winding up payments either in Hong Kong dollars or sterling. Only three banks chose to be paid in sterling. The deaNKİ for Hong Kong dollar payments exceeded the fund's resources and the additional Hong Kong dollar balances required to pay the banks were bought with sterling from the Hong Kong Government's General Account.