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25

Reference HKK 090/4

M.W.

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Mr. Forsenter. Beim

RELIVED IN FLOREN met7 OCT 1983

Ра

Ox

INDL<

Ак HK Econoppple

HONG KONG ECONOMY AND RECENT HKG POLICY

W25

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1.

You will wish to see Mr Hallett's useful minute of 29 September which amplifies Hong Kong telno 11 to Ottawa. Mr Clift may be particularly interested to see the side-lined paragraph.

2.

Mr Hallett's analysis points up that some of the corrective measures being contemplated by HKG might be difficult to enforce. Relevant in this context would be;

use

3.

(a) any proposal to prohibit the rate of foreign currency

in domestic transactions and;

(b) any attempt to penalise those borrowing Hong Kong dollars (for speculative purposes) on the security of foreign currency deposits.

Some of the other measures can be viewed only as short-term options (intervention of the Exchange Funda on a substantial scale) or as measures with a negative as well as positive aspect, (increased interest rates).

30 September 1983

They live).

السلام

C Priest (Mrs) Hong Kong Department

A helpful note which lashed BIDO produce for the benefit of some of us laymen.

Who 3110

CODE 18-77

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