TNAG-0623-FCO40-771-Hong-Kong-Government-investments-in-South-African-stocks-1977 — Page 63

CODE INT

Reference....

REC

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2

Mr Reid

RECIS..

- 2 FEL:977,

HKK TOOTS. W milten

✓ cc: Mr Stewart

HONG KONG: INVESTMENT IN SOUTH AFRICAN STOCK

1.

Have you any views. I might

ask to wavel to weak the

Treasury

-reasing fees 26/1

In response to my minute of 25 January 1977 you asked for quantification of such investment and whether the level was increasing.

2.

From the attached summary table you will see that one new stock has been purchased by the Hong Kong Colonial Government in the last financial year (1975/6), namely about 50,000 DM worth of South African 7.75% Bonds 1971/86, and that investment in 3 others was increased: namely ISCOR 7% Bonds 1972/87, South African 7.5% Notes 1971/78, ESCOM 6.5% Notes 1972/79 (ISCOR is the State iron and steel body and ESCOM the State electricity board). On the other hand some investments in other stocks were run down. The latest total is £2.8million. We do not have figures to hand for the current financial year (1976/7) and I would not expect them to be available here from the sources used before December 1977.

3. In interpreting the figures one needs to be wary of exchange rate changes, and I have for convenience expressed sums in £ Hong Kong values would of course differ, but not to the extent of invalidating any of the foregoing conclusions.

material I also have available if required photocopies of the source

the annual reports of The Director of Accounting Services with The Accounts of Hong Kong.

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4. I have also examined the latest annual report of The Hong Kong Exchange Fund, but no investment in South Africa is shown here.

26 January 1977

Nuan

dm n

RESTRICTED

Adrian Smith

Senior Economic Adviser