RESTRICTED

4. THE INDEPENDENT (BUT NOT COMMUNIST) PRESS CARRIED A

DENIAL BY A CHINA RESOURCES COMPANY SPOKESMAN THAT CHINA HAD

DECIDED TO SETTLE ACCOUNTS IN U.S. DOLLARS RATHER THAN HONG KONG

DOLLARS IN TRADING WITH HONG KONG. (THIS FOLLOWED A REPORT IN THE

RIGHT-WING KUNG SHEUNG DAILY NEWS ON 3 OCTOBER THAT CHINESE TRADERS

HAD TOLD MALAYSIAN :IMPORTERS TO PAY IN U.S. AND NOT HONG KONG

DOLLARS).

HADDON-CAVE

FUTURE OF HONG KONG

COPIES TO

SIR IAN SINCLAIR LEGAL ADVISER

LEGAL ADVISER

LIMITED

HD/HKD

MR BURROWS

HD/FED

MR ROBERTS

HD/PLANNING STAFF

MR MARTIN

HD/PUSD

PS

PS/LADY YOUNG

PS/MR LUCE

PS/PUS

SIR J BULLARD

MR GIFFARD

MR DONALD

MR WRIGHT

NEWS D

MR FLOWER

MR COLES

SIR A PARSONS

MR WALKER

ASSESSMENTS STAFF

CABINET OFFICE

PUSD

NO 10 DOWNING STREET

NO 10 DOWNING STREET RESEARCH D OAB 2/82

2

RESTRICTED

Page 120Page 121

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