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The meeting commenced at 103 30 a.m33

STABILISATION OF THE EXCHANGE RATE.

The Council considered memorandum XCS (83) 8.

The Council ADVISED and the Governor ORDERED:

(a) that with effect from Monday

(b)

17 October Certificates of

Indebtedness should be issued

and redeemed only against US

dollars, at a fixed rate to

be determined at the discretion

of the Financial Secretary;

that new and existing Hong Kong

dollar deposits with banking

institutions should be exempted

from interest tax with effect

from the same date; and

(c) that there should be further

study of measures to control

the manufacture of liquidity

by foreign based banks, and that

proposals on this should be

brought to the Council as soon

as possible.

The Council noted that the Financial Secretary would announce

measures (a) and (b) at 12 noon on Saturday 15 October, and

that the Attorney General would examine whether consequential

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