4800835

P.R. 19

HONG KONG GOVERNMENT

NFORMATION

SERVICES

DAILY INFORMATION BULLETIN

SUPPLEMENT

Wednesday, February 14, 1973

STATEMENT BY FINANCIAL SECRETARY

The Hong kong dollar has been revalued in relation

to the U.S. dollar, so that its present gold parity will

remain unchanged.

Announcing this decision by Government, the Financial

Secretary, Mr. C.P. Haddon-Cave, said that the new central

rate between the Hong Kong dollar and the U.S. dollar will be

HK$5.0850 = US$1. The upper and lower limits within which

the foreign exchange market can operate will be HK4.9706 and

HK$5.1994. "This fully reflects the ten percent devaluation

of the U.. doller announced yesterday" he added.

Commenting on the decision, Mr. Haddon-Cave said,

"Following a careful and detailed consideration of all the

factors involved, we have come to the conclusion that there

is no justification for, and no real advantage in, any

devaluation of the Hong Kong dollar.

"This is also the view that has been taken of their

own currencies by most Western European countries and by

Malaysia and Singapore. In addition, the Japanese yen is

floating upwards and has already effectively revalued against

all other currencies and by more than ten percent against the

U.S. dollar" he said.

/"These....

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