TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 277

AND SHANGHAI BANKING CORPORATION (WHICH ISVZCORIHHRCXYLE, THE

BABORLNODEONSBOIROIBAR BAD3: ADD THE FOLLOWING WORDS AT THE END OF TH

E

FIRST SENTENCE

THEHO/FO 043/23

HKK

F CO

Ho litzes но

GRS 750

SECRET

FM HONG KONG 231018Z AUGUST 82

TO IMMEDIATE F C O

TELEGRAM NUMBER 911 OF 23 AUGUST

PERSONAL FOR CLIFT (HKGD)

YOUR TELNO 646

OUR COMMENTS ON ANNEX F ARE AS FOLLOWS:

firs

VANCE CO

IMMEDIATE

HO|HKG

300

PARAGRAPH 11 ADD AT THE END OF THE FIRST SENTENCE ''PARTICULARLY IN RESPECT OF THE MANAGEMENT OF THE EXCHANGE FUND**

PARAGRAPH 2. SUBSTITUTE THE FOLLOWING: HONG KONG HAS NO CENTRAL BANK BUT ALL NECESSARY CENTRAL BANKING FUNCTIONS ARE UNDERTAKEN THROUGH THE EXCHANGE FUND BY THE MONETARY AFFAIRS BRANCH OF THE GOVERNMENT SECRETARIAT AND BY THE COMMISSIONER OF BANKING, WITH APPROPRIATE ASSISTANCE FROM THE HONG KONG AND SHANGHAI BANKING CORPORATION (WHICH IS, FOR EXAMPLE, THE MAJOR NOTE ISSUING BANK)''.

PARAGRAPH 3: ADD THE FOLLOWING WORDS AT THE END OF THE FIRST SENTENCE AND THE ROYAL CHARTER OF THE CHARTERED BANK**.

PARAGRAPH 3: BECIN THE FOURTH SENTENCE AS FOLLOWS: **TRANSFERS FROM THE EXCHANGE FUND CAN, WITH THE SECRETARY OF STATE'S PRIOR APPROVAL, BE MADE TO THE GENERAL REVENUE OF THE COLONY WHEN THE ASSETS OF THE FUND EXCEED 105 PER CENTM.....

PARAGRAPH 3: OMIT THE WORDS AND 1 CENT NOTES'' IN THE

FIFTH SENTENCE.

PARAGRAPH 3: IN THE LAST SENTENCE SUBSTITUTE THE WORDS ''ARMORIAL BEARINGS (IN WHOLE OR IN PART)'' FOR THE WORDS

''COLONIAL ARMS''