TNAG-1729-FCO40-2442-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 221

management of foreign currency assets.

2

Miss DUNN : Sir, by placing the reserves with the Exchange

Fund and I now understand that it is interest-bearing

does it not mean that the use to which the reserves are

placed is not accounted to the public?

Το

put it in another way, does this not mean that some 83 per cent

of our reserves, $27 billion, can theoretically

be used without the normal scrutiny and control of the

Finance Committee ?

FINANCIAL SECRETARY: I do not think it means that exactly,

Sir. It is, as I tried to explain in my principal answer,

the same in many ways as though. the money were placed with a

bank: the Exchange Fund owes the Government, if you like,

the money.