TNAG-1950-FCO40-2778-Hong-Kong-Exchange-Fund-1989 — Page 95

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 1223

OF 180945Z APRIL 89

CONFIDENTIAL

4

HKCIOS /i

162403

MDLIAN 3844

TOP COPY Q DIST ?

FOR THE ATTENTION OF PAUL, HKD

13

YRTELNO 746: EXCHANGE FUND ORDINANCE

1. YOU MAY WISH TO NOTE THAT THE TOTAL AMOUNT OF MONEY TRANSFERRED FROM THE GENERAL REVENUE TO THE EXCHANGE FUND NOW STANDS AT HKD47.5

BILLION. IN ADDITION, FURTHER INFLOWS OF REVENUE HAVE INCREASED THE TREASURY'S HOLDING OF SURPLUS CASH TO HKD18.5 BILLION. WE WOULD WISH

TO TRANSFER THE BULK OF THIS ALSO TO THE EXCHANGE FUND AS SOON AS WE

RECEIVE YOUR AGREEMENT ON OUR INTERPRETATION ON THE APPLICABILITY OF THE BORROWING LIMIT.

WILSON

YYYY

MAIN

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LIMITED

HKD

LEGAL ADVISERS

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DISTRIBUTION

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MR GILLMORE

MR MCLAREN