10.
During the year our imports also increased rapidly in line with the strong growth in our economy. Overall our visible trade account in 1987 was roughly in balance (5). 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.
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
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 the
long-term overall interests of Hong Kong and its community. The
linked rate system is
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.
/13. The
...