TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 132

CONFIDENTIAL

- 50 -

-

Outside

management

5.

Between 30-50% of foreign currency

assets available for investment in obligations

maturing in not less than six months should be

placed under outside management (excluding central

banks).

The Fund or any part of it may be employed

as follows:

Authorised

6.

debt

obligations

(a)

on deposit with a bank;

(b)

in marketable dated obligations issued

or guaranteed by any of the following

governments:

Australia, Austria, Belgium, Canada,

Denmark, Eire, Federal Republic of

Germany, Finland, France, Holland, Hong

Kong, Italy, Japan, New Zealand,

Norway, Singapore, Sweden, Switzerland,

United Kingdom and United States of

America;

(c)

(d)

(e)

in marketable dated obligations issued

by municipalities, state and provincial

governments, state owned corporations

and government agencies located in any

of the countries mentioned in

sub-paragraph (b) of this paragraph;

in marketable dated obligations

guaranteed by state and provincial

governments located in any of the

countries mentioned in sub-paragraph

(b) of this paragraph;

in certificates of deposit;

CONFIDENTIAL