CONFIDENTIAL
- 5-
13.
It is doubtful whether greater disclosure would lead to further demands. It is much less likely to be the case if Government seizes the initiative. In any case, general public interest currently centres only around the size of the Fund (Hong Kong people's money and the right to know, etc.) Beyond this, the whole subject becomes too technical for the general public and the politicians, Where political mileage may only be gained at the risk of exposing ignorance, further demands, if any, are unlikely to gather momentum.
14.
Hong Kong is probably one of the very few exceptions, if not the only one, amongst developed or newly industrialized economies which do not publish figures that enable some appreciation of the level of their foreign exchange reserves. The International Monetary Fund in its Article IV Consultation on Hong Kong last year reported that:
15.
helpful
"The authorities' plans to establish an Office of the Exchange Fund, which should strengthen monetary policy implementation, provides an opportunity to review present limitations on information released regarding assets of the Exchange Fund, which include international The staff urges that positive consideration be given to this, and to efforts to fill in the important gaps that exist in balance. of payments statistics."
reserves.
Monetary management in Hong Kong has received_ endorsement from the IMF, which is not something that one comes across everyday. It will be a pity if the. continued lack of information in this area for по convincing reason is to influence adversely IMF's view on this policy area of Hong Kong. Another Article IV Consultation is scheduled for October this year. Much political mileage can be gained for Hong Kong in the IMF (under the UK umbrella) if a positive development can be. reported.
CONFIDENTIAL
P5
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