RESTRICTED
4. ALL PAPERS REPORTED, MANY PROMINENTLY, THE REMARKS MADE BY CHINESE ECONOMIST, XU DIXIN, ABOUT THE DECLINE IN THE EXCHANGE RATE OF THE HONG KONG DOLLAR (MY TELNO 1350 REFERS). XU SAID THAT THE HONG KONG GOVERNMENT WAS RESPONSIBLE FOR MAINTAINING THE STABILITY OF THE HONG KONG DOLLAR. SOME NEWSPAPERS REPORTED THIS SOMEWHAT DIFFERENTLY TO MEAN THAT QUOTE WHOEVER ISSUES BANK NOTES SHOULD BE RESPONSIBLE FOR THEM UNQUOTE. EDITORIAL COMMENT IN THE COMMUNIST PRESS AGAIN LAID THE BLAME ON THE DOLLAR'S SLIDE ON THE HONG KONG GOVERNMENT AND HTS FAILURE TO TAKE QUOTE REASONABLE MEASURES UNQUOTE. THE FUNG YAT PO (MINOR LEFT-WING) ARGUED THAT THE SHARP DROP IN THE VALUE OF THE HONG KONG DOLLAR HAD BEEN DELIBERATELY ORCHESTRATED BY QUOTE SOMEONE UNQUOTE (UNNAMED) IN ORDER TO QUOTE STRENGTHEN THEIR BARGAINING POWER UNQUOTE (NOT ELABORATED).
YOUDE
THIS TELIORAM
ADTAMILD
LEGAL ADVISER
LEGAL ADVISER
FUTURE OF HONG KONG
COPIES TO
LIMITED
STR IAN SINCLAIR
MR BURROWS
HD/HKD
HD/FED
MR ROBERTS
NEWS D
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 GOGGS
HKGO, LONDON.
RESTRICTED
&