assets or on the security of the general revenue such borrowing will be subject to the limitations imposed by section 3 (4). In granting security over public assets the Financial Secretary encumbers them in a way he does not when he borrows unsecured. It is therefore losival that the Legislature has imposed a specific limitation on the extent to which he may do so, particularly as it has permitted him to use as security the resources of the general revenue, a fund not otherwise under his cont rol pursuant to the Exchange Fund Ordinance.
5.
Section 3 (3) makes no mention of unsecured horrowing. In my opinion the drafting of this subsection cannot be construed as conferring or limiting the Financial Secretary's general power to borrow. Logical difficult to see how the objects of the
2.ach I
would describe as effective influence on the currency's exchange rates, would be served by a provision corpelling the Financial Secretary to give a charge over public funds when it is unnecessary to do so. Had the Legislature wished to impose such a limit it could have e sily done so by the following drafting:-
"the Financial Secretary ray borrow for the account of the Fund in Pong Kong or elsewhere only on the security of any asset held by the Fund or on the general revenue"
The limitation, obvious in this drafting, is conspicuous by its absence in the Ordinance.
5.
In my opinion the Financial Secretary's powers to borrow unsecured pursuant to section 3(1) and (2) are unaffected by the provisions of section 3 (3) which relate only to specific forms of secured borrowing. 1: follows therefore that the limitations on aggregate borrowing in section 3(4) also do not apply to such unsecured borrowing.
(S.M. Cennor)
G.F. 326
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