TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 278

PARAGRAPH 4: END THE SECOND SENTENCE WITH THE WORDS

''AND THE BULK OF THE GOVERNMENT'S HONG KONG DOLLAR BALANCES''. THE FIGURE OF HONG KONG DOLLARS 11.9 MILLION AT END 1981 SHOULD READ HONG KONG DOLLARS 11.9 BILLION (REPEAT BILLION).

PARAGRAPH 6: INSERT AFTER THE WORDS **MINOR EXTERNAL DEBT'' IN THE THIRD SENTENCE THE FOLLOWING WORDS IN BRACKETS HONG KONG DOLLARS 244 MILLION AT 31 MARCH 1982'' AND END THE SENTENCE WITH THE WORDS FOR LEGAL REASONS''.

PARAGRAPH 6: END THE PENULTIMATE SENTENCE WITH THE WORDS HONG KONG DOLLARS 4.2 BILLION (MTRC, CURRENT FIGURE) AND HONG KONG DOLLARS 9.6 BILLION (HOME OWNERSHIP SCHEME, ESTIMATED FOR 1986)''.

PARAGRAPH 7: OMIT THE WORDS IS A MAJOR EMPLOYER AND ITS'' AND FOR SECTOR READ SECTORS''

PARAGRAPH 81 INSERT AN ADDITIONAL SENTENCE AFTER THE FIRST SENTENCE AS FOLLOWS: TWO BANKS, NAMELY, THE CHARTERED BANK AND THE BANK OF CHINA ARE SUB-CLEARERS FOR 19 AND 12 OTHER BANKS RESPECTIVELY''.

PARAGRAPH 8: THE SECOND SENTENCE SHOULD READ AS FOLLOWS: IN 1964 HSBC AND THE CHARTERED BANK AT THE HONG KONG GOVERNMENT'S REQUEST PROVIDED FUNDS TO AVERT A LIQUIDITY CRISIS IN THE BANKING SYSTEM. THIS WAS THE ONLY OCCASION ON WHICH THERE HAS BEEN A LIQUIDITY CRISIS AND ONLY 3 SMALL BANKS WERE INVOLVED. FUNDS WERE SUBSEQUENTLY PROVIDED BY THE GOVERNMENT TO MEET NET CREDITORS' CLAIMS''.

PARAGRAPH 8: THE THIRD SENTENCE SHOULD BEGIN WITH THE

WORDS BECAUSE HSBC IS THE MAIN BANKER TO THE GOVERNMENT (INCLUDING, OF COURSE, THE EXCHANGE FUND) AND BECAUSE OF ITS OWN POSITION...."

PARAGRAPH 8: THE WORD OVERALL SHOULD BE SUSTITUTED

FOR THE WORDS HONG KONG DOLLARS'' IN THE THIRD SENTENCE.

PARAGRAPH 8 : THE REFERENCE TO THE MONOPOLIES COMMISSION ENQUIRY SHOULD BE OMITTED BECAUSE IT IMPLIES THAT THE HONG KONG GOVERNMENT'S ULTIMATE LIABILITY IS A CONCEPT WHICH EMERGED AT THE TIME.

PARAGRAPH 9 AFTER THE WORDS IN PRACTICE THIS COULD BE CONTAINABLE IN THE THIRD SENTENCE, INSERT PROVIDED THE SITUATION AROSE FROM COMMERCIAL FACTORS AND NOT FROM AN ACTUAL, OR EVEN ANTICIPATED CHANGE IN THE POLITICAL SITUATION, BUT IT...''.