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no strong grounds for anticipating significant modification
in
to the institutional arrangements already described,
the years up to 1997, it is much less certain that the
buoyant and expansionary climate for business which has
prevailed for so long can be maintained untouched by the
prospect of political changes of the kind examined below
or, possibly, even more radical. Particularly if the
process of negotiation is slow, confidence can be expected
to become increasingly shaky.
(i)
Recognition of Chinese Sovereignty with Continuing
British Administration
14. If Chinese sovereignty over Hong Kong were to be
recognised by HMG but full British administration continued,
there would be no need for substantive change in banking
legislation or the powers and responsibilities of the Hong
Kong Government in financial matters.
15.
However, there could be a political need to change
the emblems on the currency but this would be a practical
problem (and relating to new issues only) of no major
significance. The Treasury's (and the Secretary of State's)
responsibilities in relation to the coinage might be judged
a political anachronism and so require repeal. The same
applies to the references in the Exchange Fund Ordinance
relating to the requirement to seek the Secretary of State's
authority for the purchase of securities and the borrowing
/powers
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