TNAG-0525-FCO40-620-Visit-of-UK-Members-of-Parliament-(Defence-and-External-Affa-1975 — Page 168

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HONG KONG STERLING RESERVES REMAIN STEADY: BY ROGER JEHL.

HONG KONG/SEP 17 - THE STERLING CONTENT OF THE HONG KONG GOVERNMENT'S EXTERNAL ASSETS REMAINED RELATIVELY STEADY ON BALANCE IN THE MIDDLE FOUR MONTHS OF THIS YERR. INFORMED SOURC- ES SHID.

THE STERLING PERCENTAGE RETURNED TO AROUND THE 40 PCT LEVEL REACHED IN THE FIRST FOUR MONTHS AFTER DIPPING FOUR OR FIVE PCT LOWER AT TIMES: THEY SHID.

THE LOW POINTS COINCIDED WITH LOWER MARKET LEVELS FOR UK GILT-EDGED STOCK WHICH FORMS AN IMPORTANT PART OF THE EXTERNAL ASSETS.

FINANCIAL SECRETARY PHILIP HADDON-CAVE TOLD THE LEGISLATIVE COUNCIL IN JAKURRY THAT THE GOVERJMENT'S EXTERNAL ASSETS AT END 1974 WERE AROUND 1.000 MLN US DLRS.

HOWEVER, THE ASSETS COULD NOW BE UP TO ONE THIRD HIGHER FOLLOWING LARGE US DOLLAR PURCHASES BY THE GOVERNMENT EARLIEF THIS YEAR TO MERKEN THE HONG KONG DOLLAR, THE SOURCES SHID.

THE GOVERNMENT IS BELIEVED TO HAVE SOLO LITTLE OF THE INCREASED US DOLLAR HOLDINGS SINCE THEN AND HAS INTERVENED ONLY RARELY WHEN MARKETS HAVE BEEN DISTURBED.

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