GRS 300
SECRET
DESKBY 23083OZ
SECRET
TOP COP
HKK040/3
MANOID IN REM, Cað t 2 3 AUG 1982
FM HONG KONG 23080OZ AUGUST 52
TO IMMEDIATE F C O
TELEGRAM NUMBER 906 OF 23 AUGUST
FOLLOWING PERSONAL FOR CLIFT (HKGD)
FOLLOWING PASSAGE 10 FOR INSERTION IN PARA 32(F):
m
Pambla
"IF THE PRESENT LEGAL SYSTEM WERE MAINTAINED INTACT AND HMC CONTINUED TO DE RESPONSIBLE FOR HONG KONG'S EXTERNAL RELATIONS, THERE IS NO NECESSARY REASON WHY THE CAME FISCAL AND MONETARY POLICIES THAT HAVE FACILITATED THE ECONOMY'S GROWTH PERFORMANCE AND DIVERSIFICATION IN THE PAST SHOULD NOT BE EQUALLY SUCCESSFUL IN THE FUTURE. THAT IS TO SAY, IN PARTICULAR, THE HONG KONG DOLLAR SHOULD CONTINUE TO BE FREELY TRADED IN THE INTERNATIONAL FOREIGN EXCHANGE MARKET AND HONG KONG'S POSITION AS AN INTERNATIONAL FINANCIAL CENTRE SHOULD BE PRESERVED INTACT. THE EXCHANGE FUND WOULD CONTINUE TO HOLD THE ASSETS BACKING THE CURRENCY AND THE GOVERNMENT'S OWN FINANCIAL ASSETS AND PLACE THEM IN HONG KONG DOLLAR DEPOSITS OR FOREIGN CURRENCY DEPOSITS OR SECURITIES TO MAXIMISE EARNINGS AND MINIMISE EXCHANGE RISKS. BUT IF THERE WERE ANY DOUBTS WHATSOEVER ABOUT THE MANAGEMENT CONTRACT, THE HONG KONG DOLLAR LIQUIDITY OF THE BANKING SYSTEM WOULD BE AT RISK AS DEPOSITS WERE WITHDRAWN AND THE EXCHANGE VALUE OF THE HONG KONG DOLLAR WOULD RAPIDLY DECLINE AS FUNDS WERE SWITCHED INTO FOREIGN CURRENCIES''.
YOUDE
LIMITED
HKD
FED
MRJIFFARD
SECRET
COPIES TO MR RUSHFORD
LEGAL ADVISER.
See
ся