CONFIDENTIAL
26453
1
AGAINST CHINESE INTERFERENCE IN HONG KONG. AT PRESENT THIS IS
PROVIDED BY BRITISH ADMINISTRATION. PROBLEM IS THAT CHINESE
APPEAR TO BELIEVE THAT BY SIMPLY SAYING THT HONG KONG WILL
CONTINUE AS A COMMERCIAL AND FINANCIAL CENTRE WITH AN
INDEPENDENT CONVERTIBLE CURRENCY, THIS WILL ON ITS OWN MAINTAIN
CONFIDENCE AND THE HONG KONG DOLLAR.
7. WE AIM TO FIND OUT MORE ABOUT THE CHINESE IDEAS IN ORDER TO
SEE WHAT ASSURANCES THEY HAVE IN MIND FOR HONG KONG
WE HAVE MADE NO REPEAT NO CONCESSIONS WE HAVE
SOUGHT TO EDUCATE CHINESE ABOUT BASIS FOR CONFIDENCE AND
IMPORTANCE OF CONTINUITY OF CURRENT SYSTEMS.
8. DESPITE HEALTHY ECONOMIC PROSPECTS CONFIDENCE IN HONG
KONG FRAGILE. HIT BY SLOW PROGRESS IN TALKS AND CHINESE
PROPAGANDA. HONG KONG DOLLAR FELL SHARPLY IN AUGUST AND
SEPTEMBER. MEASURES INTRODUCED BY HONG KONG GOVERNMENT IN LATE
SEPTEMBER HELPED TO STABILISE LOCAL CURRENCY. FURTHER IMPORTANT
MEASURES ON 15 OCTOBER HAVE LINKED THE HONG KONG DOLLAR
HOWE
FUTURE OF HONG HONG
LIMITED
3D/FED
ED/F LANNING STAFF
ED/PUSD
D/E/FUSD (MR FLOWER)
RESEARCE DEPT (MR WALKER)
LEGAL ADVISER (SIR IAN SINCLAIR)
!
HD/ECDCE)
PS
PS/LADY YOUNG
PS/MR LUCE
PS/EUS
SIR J BULLARD
MR GIFFARD
MR DONALD
COPIES 10:
MR BURROWS
ME ROBERTS
MR. MARDIN
LEGAL ADVISERS
NEWS DEPOT ASSESSMENTS STAFF
CABINET OFFICE
MR COLES No 10 DOWNING SE
SIR PARSONS
??
:
19
MR GOODALL CABINET OFFICE
SIR PHIMLIZ MOURE
BUCKINGHAM
PALACE
PS/LORD PRESIDENT OF ESE CONCIL
PS/ECME SECRETARY
FS/CEANCELLOR OF THE EXCHEQUER
PS/ S OF S FOR DEFENCE
FS/LORD PRITY SEAL
PS/SECRETARY FOR TRADE AND
MR WRIGHT
2
CONFIDENTIAL
PS/ATTORNEY GENERAL
;
INDUSTRY