TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 133

CONFIDENTIAL

Private

7.

placements

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51

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(f) in bankers' acceptances and short term promissory notes issued by banks;

(g) in marketable dated obligations issued by international organisations such as I.B.R.D. (World Bank), Asian

Development Bank, E.E.C., Euratom,

Eurofima, European Coal and Steel

Community, European Investment Bank

etcetera;

(h)

(i)

in SDR denominated deposits with a bank;

in equities, subject to a maximum

amount of 10% of the note and coin

issue liabilities of the Fund and to

the approval of the Secretary of State;

(j) Japanese electric utility companies

which are subject to the Electric

Utility Law (Law No. 170 of 1964).

Up to 10% of the Fund may be invested :

(a)

(b)

in obligations shown as 'private

placements' in the AIBD manual;

in direct loans to governments and international organizations such as the

IBRD and the EIB and others which are

described by the organizations as

'private placements' at the time the

investment is made;

CONFIDENTIAL