GRS 275
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FM HONG KONG 2009OOZ SEP 83
TO PRIORITY PEKING
TELEGRAM NUMBER 536 OF 20 SEPTEMBER
HNFO PRIORITY F C O
ROUTINE HONG KONG GOVERNMENT OFFICE LONDON,
213
HK REPS WASHINGTON, NEW YORK, GENEVA AND BRUSSELS.
FUTURE OF HONG KONG: PRESS COVERAGE.
MKK0402
REVEIVED IN ALGISTRY
2 ADEP 1983
FICTA
PA
REGIST
Action T.
my CM2619
1
INDEX
•
1. THE COMMUNIST PRESS TODAY PERSISTED IN THEIR CRITICISM OF THE HONG KONG GOVERNMENT'S ECONOMIC POLICIES AND T SPECIFIC CONN VANCE AN THE DECLINE OF THE HONG KONG DOLLAR TO ACHIEVE POLITICAL PRESSURE'' (MY TELNO 1381) THE ENGLISH LANGUAGE HONG KONG STANDARD ALSO PUBLISHED AN EDITORIAL CRITICAL OF THE HONG KONG GOVERNMENT FOR S''STANDING ON THE SIDE LINES AND URGING HT TO DO MORE (UNSPECIFIED) TO BOLSTER THE HONG KONG DOLLAR. A NUMBER OF ANDEPENDENT NEWSPAPERS, HOWEVER, ARGUED THAT THERE WERE LIMITS TO THE EXTENT TO WHICH THE HONG KONG GOVERNMENT COULD INTERVENE EFFECTIVELY IN THE FOREIGN EXCHANGE MARKETS. THE ORIENTAL DAILY AND THE HONG KONG ECONOMIC JOURNAL (BOTH INDEPENDENT) SAHID THAT HONG KONG'S RESERVES. EVEN IF THEY WERE USED MORE EXTENSIVELY, WERE TOO SMALL TO HAVE MUCH OF AN IMPACT IN THE FOREIGN EXCHANGE MARKETS. THUS THE HONG KONG GOVERNMENT COULD NOT EFFECTIVELY INTERVENE AND, BY THE SAME TOKEN, LACKED THE MEANS TO MANIPULATE'' THE FOREIGN EXCHANGE RATE FOR POLITICAL PURPOSES. CONTRARY TO MTS GENERALLY PRO-CHINA EDITORIAL STANCE, THE THN TIN DAILY NEW HELD THAT NO ONE PARTY WAS RESPONSIBLE FOR THE DECLINE IN THE HONG KONG DOLLAR, THE ASSURANCES THAT BOTH SIDES GAVE TO MAINTAIN CONFIDENCE WERE REALLY EMPTY WORDS: WHAT REALLY MATTERED WAS THE CLOUD OF POLITICAL UNCERTAINTY PRESENTLY HANGING OVER HONG KONG.
HADDON-CAVE
SIR IAN SINCLAIR LEGAL ADVISER LEGAL ADVISER
NEWS D
FUTURE OF HONG KONG
COPIES TO
LIMITED
HD/HKD
MR BURROWS
HD/FED
MR ROBERTS
HD/PLANNING STAFF
MR MARTIN
HD/PUSD
PS
PS/LADY YOUNG
MR FLOWER
PS/MR LUCE
MR COLES
PS/PUS
SIR J BULLARD
MR GIFFARD
MR DONALD MR WRIGHT
ASSESSMENTS STAFF
CABINET OFFICE
PUSD
NO 10 DOWNING STREET
SIR A PARSONS NO 10 DOWNING STREET
MR WALKER RESEARCH D
HKCO, LONDON.
RESTRICTED
GOGGS
1