Ref HKK 040/2
SUMMARY OF HONG KONG MEDIA COVERAGE OF FUTURE OF HONG KONG AND
RELATED ISSUES 20/31 MAY 1983
MAIN POINTS
1.
SLIDE OF HONG KONG DOLLAR
During the week commencing 24 May, fewer than 30 editorials
analysed the reasons for this and called for Government measures to
prop up the exchange rate. The slide in the Hong Kong dollar was attributed primarily to:
(a) Hong Kong's uncertain political future, but also to:
(b) 'Improper' economic development in recent years,
particularly;
(c)
(i) The Hong Kong Government's high land prices policy. (ii) Its decision not to waive interest tax on Hong Kong
dollar deposits.
Speculation by those deliberately seeking to create
chaos on the money market.
(d) Relative strength of the US dollar due largely to high
interest rates.
Measures advocated to arrest the slide included ;
(a)
Waiving interest tax on Hong Kong dollar deposits.
(As advocated by, inter alia, the Deputy Director of the
Bank of China).
(b) An assurance about Hong Kong's future coming jointly