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PRIORITY
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TO PRIORITY HONG KONG TELNO 673 OF 30 AUGUST
AND TO ROUTINE WASHINGTON.
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АКК 18411
༣ འ. ༥་
BY NO. 51
DECK OFFICER INDEX
PE I WY
PA
Action Tewan
240
US/HONG KONG CURRENCY PROBLEMS: YOUR TELNO. 543 AND MY TELHOS, 1617 AND 1813 TO WASHINGTON.
ملدا
WE HAVE NOW BEEN APPROACHED BY THE US EMBASSY, THEY QUERIED THE INFORMATION CONTAINED IN THE SECOND PARAGRAPH OF NOTE 194 WHICH WASHINGTON PUT IN TO THE STATE DEPARTMENT ON 24 JULY (TEXT IN THE SECOND TELAGRAM UNDER REFERENCE) THAT THERE IS A GAP BETWEEN SELLING RATES IN US DOLLARS AND HONG KONG DOLLARS IN HONG KONG. THEY ARGUED THAT THE US AIRLINES HAD TOLD THEM THAT THE US DOLLAR FARES AVAILABLE IN HONG KONG ARE THE EQUIVALENT OF THE HONG KONG DOLLAR FARES CONVERTED AT MARKET RATES AND THAT THERE IS NO DISCRIMINATION AGAINST PASSENGERS PAYING IN LOCAL CURRENCY,
2. WE THINK THAT THIS IS A FURTHER DELAYING TACTIC BY THE US, WHO HAVE TAKEN NO POSITIVE ACTION ON THIS PROBLEM SINCE SHOVELTON RAISED THIS MATTER WITH ATWOOD IN FEBRUARY. HOWEVER, PLEASE CONFIRM THAT THE POSITION HAS NOT CHANGED SINCE YOUR TEL. 548.
3. EVEN IF THE US VIEW IS CORRECT THE UNDERLYING PROBLEM OF THE USE OF AN ARTIFICIAL EXCHANGE RATE SUBSTANTIALLY DIFFERENT FROM MARKET RATES TO CALCULATE THE HONG KONG DOLLAR FARE REMAINS. INDEED IF THE OPTION OF BUYING A CHEAPER FARE IN US DOLLARS IS NOT AVAILABLE THEN THE CONSUMER IN HONG KONG IS AT A GREATER DISADVANTAGE THAN WE INITIALLY BELIEVED.
4. SUBJECT TO YOUR REPLY, COULD WASHINGTON PLEASE TAKE THIS MATTER UP WITH STATE DEPARTMENT AND PRESS THEM FOR A FORMAL REPLY TO NOTE
194.
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