Mr Ricketts
Mr Burns
PS/Mr Goodlad
Has 10tz
latz
FROM:
M V Stone
DATE:
CC:
Hong Kong Department
12 May 1992
PS/Mr Patten
wle
Mr Broadbent,
Economic Advisers
Mr Cox, HKD
SENIOR TREASURY IMPRESSIONS OF HONG KONG
Β ́
1. The Minister may be interested to glance at the attached report from Paul Gray, Under Secretary at HM Treasury on his visit to Hong Kong in early April. Mr Broadbent, Economic Advisers, has offered a number of valuable comments on
Mr Gray's report. Overall, Mr Gray has come away with the right impressions: prospects for growth are good; the linked exchange rate mechanism is valuable and working; and the integration of Hong Kong with Southern China is of
major and growing importance. On Mr Gray's more negative comments which are fairly mild considering his perspective
-
- I would offer the following brief comments;
(a)
Inflation. Mr Broadbent has commented in some detail on inflation in paragraph 3 of his minute. This is not a problem that the legislature or Hong Kong people would allow the Hong Kong Government to deal with in a casual manner: it affects everybody. But there are practical limits to what can be done, given the underline causes.
NJCABZ/1
146
(46)