sovereignty over the whole territory, the final appeal would not be going before the Privy Council. Neither do I think it should go to Beijing because there is no court there experienced to handle arbitration in commercial disputes. I consider, therefore, that a law must be passed in Hong Kong before 1997 providing final appeals Le be considered locally. I feel sure that the House of Lords would be willing to provide the Privy Council decisions in favour of Hong Kong to help the judiciary.
Before 1972, our Exchange Fund and General Reserves were tied to Sterling under Colonial Regulations and as a result, Hong Kong lost heavily through the weakness of the pound and through successive devaluations. In 1972, our Hong Kong dollar broke away from Sterling and diversified. The diversification of the Fund is being managed with success and Hong Kong has now become the world's 3rd financial centre which should be maintained as such with full vigour.
that is one of the points the Chinese leaders had in mind when they spoke about preserving Hong Kong's present status. When the year of 1997 arrives, the Exchange Fund must not be transferred to London or to Beijing but should be kept locally at all times. This will perpetuate the independency of the Hong Kong dollar and continue to strengthen the confidence in Hong Kong by the international commercial community. "
It is of course the above which causes me, at least, some concern. If he does give this speech we may be sure he will have it publicised in Hong Kong and no doubt will see that some UK journalists will pick it up. It also worries me personally that, if one looks at the man and his connections, one is forced to wonder why he should be saying these things at this time. Dare I suggest that he has been put up to this, not necessarily by the Chinese but by other businessmen who see the lead up to 1997 as a Golden Era for them?