TNAG-0623-FCO40-771-Hong-Kong-Government-investments-in-South-African-stocks-1977 — Page 23

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL

15

香港總督府

IN

23 MAR 2777

GOVERNMENT HOUSE

HONG KONG

M. Milton

Please submist

me

to

through the Minister of State after comrullay

F.R.D! This tooks

Thank you for your letter of 22nd at Tome.

بول

Tor Jult

4KK 122/1

15th March 1977

February.

2.

10

We hold the following stocks:

Description

Nominal Value

Held

Be

Zafici

(1) South African Railways

71% 1973/88

(2) South Africa 8% 1972/87

DM 5,000,000

US$ 200,000

(3) South Africa 7 3/4% 1972/87

(4) South Africa 6 3/4% 1969/84

(5) South Africa 71% 1971/78

US$ 450,000

DM

500,000

DFL 620,000

3.

Item (1) was a direct purchase made in May 1973. Items (2), (3), (4) and (5) were purchased by the Crown Agents for Overseas Governments and Administration under their discretionary investment mandate. The Crown Agents' purchases were made at various dates between August 1972 and January 1976.

4.

All of these stocks have been taken into the Exchange Fund in accordance with the arrangements detailed in paragraphs 75-84 of the Financial Secretary's 1976 budget speech. The accounts of the Exchange Fund are not, of course published. It follows, that if we have not been criticised already it is unlikely we shall be subject to any criticism in the future. Were we to sell these stocks now rather than keep them to maturity which is our policy in the absence of any profitable switch opportunities, we would make a loss on items (1) (3) and would just abour break even on items (4) and (5), and this would attract unfavourable comment from both the Director of

D.F. Murray Esq., CMG

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