TNAG-1950-FCO40-2778-Hong-Kong-Exchange-Fund-1989 — Page 93

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1325

OF 27100OZ APRIL 89

HKCiOS/,

FOR THE ATTENTION OF PAUL, HKD

ATTENT

हयड

YRTELNO 856: EXCHANGE FUND ORDINANCE

015222

MDHIAN 2407

SOPY

377

YOU MAY WISH TO NOTE THAT THE TOTAL AMOUNT OF MONEY TRANSFERRED FROM THE GENERAL REVENUE TO THE EXCHANGE FUND NOW STANDS AT HKD49 BILLION. WE ARE NOT ABLE TO CONTINUE PROPERLY TO PURSUE OUR MONETARY POLICY OR TO MANAGE OUR RESERVES UNLESS AND UNTIL WE RECEIVE CONFIRMATION FROM YOU ON OUR INTERPRETATION OF THE APPLICABILITY OF THE HKD50 BILLION BORROWING LIMIT. YOU WILL RECALL THAT WE FIRST PRESENTED THE CASE TO YOU WITH FULL DETAILS ON 8 MARCH AND THAT IN YOUR TUR YOU HAD ANTICIPATED BEING ABLE TO GIVE US A SUBSTANTIVE REPLY BY THE END OF LAST WEEK. WE WOULD BE GRATEFUL FOR YOUR RESPONSE BY THE END OF THIS WEEK.

WILSON

YYYY

ΜΑΙΝ

17

LIMITED

HKD

ADDITIONAL

1

MR EDWARDS, LEGAL ADVISERS

NNNN

DISTRIBUTION

18

MR GILLMORE

MR MCLAREN

1

PAGE

CONFIDENTIAL