14
Thursday, March 16, 1972
BARGAINING POSITION ON ECONOMIC ISSUES
One Advantage Of Diversification Of Reserves
The Hon. G.M.B. Salmon said today there might well be advantages
from diversification of the Colony's Sterling reserves bearing in mind the
appreciation in value had Hong Kong held Deutchmarks or Yen.
He made this comment in the Legislative Council today when the
debate on the Budget was resumed. The speaker before him, the Hon. .W. Lee,
had dwelt in detail on Hong Kong's reserves position and the changing
character of the United Kingdom Sterling guarantee.
Mr. Salmon pointed out that diversification of the Colony's
reserves would give Hong Kong a bargaining position on economic issues elsewhere.
He did not know whether Hong Kong's substantial reserves in London
had been used for bargaining purposes in the textile negotiations with the
British Government in January, he said.
But Hong Kong had full reason to be badly shocked and disappointed
over the short notice of the quota controls in the United Kingdom and he
hoped the Financial Secretary would keep the Council advised of developments,
he added.
Continuing his comments in connection with trade, Mr. Salmon said
he would like to make a further point which concerned Hong Kong's public
relations effort.
Hong Kong, he said, had an office in London and representatives
in Brussels, Geneva and Washington.
/"I wonder,