SECRET
сные
P COPY Please con
(357
comps to Mr. Chich (SPD).
DD 272100Z WELLINGTON
RR CANBERRA
GRS 430
SECRET
DESKBY 272100Z
HKK040/5
RECEIVED IN KEGISTRY
28 SEP 1983
DESK OFFICER
INDEX
REGISTRY
FM FCO 271630Z SEP 83
TO IMMEDIATE WELLINGTON
PA
| Action Takan
brally
20951 - 1
TELEGRAM NUMBER 231 OF 27 SEPT
INFO ROUTINE CANBERRA (PERSONAL FOR HIGH COMMISSIONER), HONG KONG.
COMMI
355 YOUR TELNO 227 (NOT TO OTHERS): FUTURE OF HONG KONG: BRIEFING
FOR MR WHITNEY IN NEW ZEALAND AND AUSTRALIA
1.
MR WHITNEY'S BRIEFING MATERIAL WAS SUPPLEMENTED BEFORE HIS
DEPARTURE TO TAKE ACCOUNT OF SINO-BRITISH TALKS HELD IN PEKING
ON 22/23 SEPTEMBER. HE MAY HOWEVER FIND IT USEFUL TO HAVE
FOLLOWING INFORMATION ABOUT HONG KONG STOCK MARKET AND EXCHANGE
RATE FLUCTUATIONS:
(BEGIN UNDERLINING) LINE TO TAKE (CEASE UNDERLINING)
2.
SHARP FLUCTUATIONS IN HANG SENG INDEX MORE COMMON THAN IN
WESTERN STOCK EXCHANGES. INFLUENCED MAINLY BY DEVELOPMENTS IN
HONG KONG PROPERTY MARKET. HONG KONG DOLLAR FLUCTUATIONS AFFECTED
BY WORLD RECESSION AND STRENGTH OF US DOLLAR. BUT ANXIETY ABOUT
HONG KONG'S FUTURE HAS BEEN BY FAR THE
MAIN FACTOR: RECENT SLIDES REFLECT
LACK OF
CUMULATIVE EFFECT OF CHINESE PROPAGANDA CAMPAIGN.
CONFIDENCE IN CHINA'S PLAN FOR HONG KONG. UNDERLYING STATE OF
THE ECONOMY GENERALLY HEALTHY.
(BEGIN UNDERLINING) BACKGROUND (CEASE UNDERLINING)
3. DURING PAST YEAR, HONG KONG DOLLAR HAS DEPRECIATED AGAINST
US DOLLAR BY 42.5 PER CENT. DEPRECIATION SHARP IN OCTOBER 1982
AND JUNE THIS YEAR BUT PARTICULARLY SO IN WEEK 16-23 SEPTEMBER.
HONG KONG DOLLAR FELL THEN BY 10.8 PER CENT AGAINST US DOLLAR
(FROM US DOLLAR 1 HK DOLLAR 7.78 TO 8.73) AND TRADE WEIGHTED
INDEX BY 8.2 PER CENT (FROM 68.3 TO 62.7). IN SAME PERIOD, HANG SENG INDEX FELL FROM 916 TO 786.
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