TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 37

Miss Yue: As the Secretary for the Treasury said just now, we keep part of the fiscal reserves in the Exchange Fund merely, if you like, as a deposit account. We keep other parts of our

fiscal reserves in normal commercial banks.

Mr Macleod: If you are asking how much of our seventy billion is in the Exchange Fund, the answer is: I don't know. In doing our budgeting, we have no regard to the Exchange Fund. It is quite a separate operation.

Question 10: The figures from two months ago is that the government put some fifty billion dollars from the fiscal reserves into the exchange fund. So, if the airport project is going to use this 63 billion [sic] will it cause collapse of the Exchange Fund?

-

Mr Macleod: I don't know any 63 billion. I am sorry, I know there are all these figures floating around. I deal with the government fiscal reserves. Whatever other figures are floating around, I know over 70 billion Hong Kong dollars. Now, where they are deposited at any particular point in time is not of any great interest to me. Or to the government finances. I mean, as far as I am concerned,

am concerned, they are in the bank earning interest. And that is the extent of my interest in the Exchange Fund or in the reserves.

Question 11: The rest of this which will be funded publicly, can you tell us how much of that will be funded through direct borrowing? Or are you going to have bonds? Exactly how are you going to do that?

Mr Macleod: No, that's what I was trying to explain at the beginning. That I cannot tell you at this moment because, take the largest project - which we are talking about private sector participation, the airport. As I said, we are still awaiting, basically, two main consultancies on it. One is on the detailed planning and costing and the other is on the financing. would be unwise of me to produce a figure which would, inevitably, not be quite right in a few months time.

Question 12: Next year for that as well?

Mr Macleod: Yes, yes.

So, it

Question 13: Mr Macleod, from what you have said just now, does that mean that you have reviewed the calculation made by Mr Lu Ping this morning. He volunteered to say that the Exchange Fund comprises two parts. One part is 30 billion dollars, to underwrite the issue of bank notes and the remaining 60 billion dollars is drawn from the government reserves. So, does that mean that you have reviewed what he said this morning? That you don't know, actually, how much is in the Exchange Fund?

Mr Macleod: I am certainly not going to say anything which could be interpreted as refuting what someone else is saying

fund which is actually administered by a committee and the Secretary for Monetary Affairs. I am actually the client in this case. That is to say I have, on behalf of the Hong Kong