So although we have been maintaining trade surpluses with many
of our major markets we have used our export earnings to buy
what we need from our major suppliers, with many of whom we run
large trade deficits. We do not amass vast surpluses on our
visible trade account. We are free traders in the full sense of
that term.
11.
I draw particular attention to our visible trade
account and our large trade deficits with a number of economies
because our trade surpluses with some economies, particularly
the United States, have been cited as a reason for changing the
linked exchange rate.
Our overall visible trade balance
provides no justification whatsoever for a change in the linked rate, especially since a change would involve a revaluation of the Hong Kong dollar against the currencies of trading partners with whom we already have large visible trade deficits.
12.
In the light of the intense speculative pressure to
which our exchange rate has been subjected from time to time, I wish to emphasize that the Government must have regard to
to the
long-term overall interests of Hong Kong and its community. The
linked rate system is a vital element of stability for Hong
Kong; and it provides a mechanism for monetary control. I have
no intention of altering the current rate.
SOT
7
/13. The