EXCHANGE CONTROL ORDINANCE

Mr R. Jumabhoy asked the Financial Secretary, in view of the comments made on a recent case heard in the High Court under section 9 (1) of the Exchange Control Ordinance (Cap. 216), whether he will consider introducing amending legislation or take any other steps to exclude payments of moneys in which the Colony has no interest at all from the scope of the said section 9 (1).

Mr T. M. Hart: No, Sir, It is still considered essential as an effective check on evasion that the existing provision should be retained. It will be appreciated that section 9 of the Ordinance does not impose an absolute prohibition on acts preparatory to the making of payments outside the Colony for the credit of persons resident outside the scheduled territories. It only makes such an act an offence if the permission of the Controller is not obtained but such permission is readily given if the Controller is satisfied that there will not be a loss of foreign exchange.