SALAHL

G.

HONG KONG/US DOLLAR LINK

RESTRICTED

1. Contribution to stability

Since October 1983 the Hong Kong/US dollar link has brought about

stability and maintained confidence by creating a predictable

financial framework. Any change in the link would be a matter for

the Hong Kong Government. They are convinced tht such an action

would cause uncertainty and speculation in the years ahead, which

could seriously harm Hong Kong. We endorse this view.

RESTRICTED

G54

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