2
Wednesday, February 14, 1973
"These moves have all been made in a concerted effort
to bring more order into the international monetary system
and to set the scene for the opening of a new round of
multilateral trade negotiations in the autumn.
"As an important trading centre Hong Kong must also
play its part in this stabilising process from which we can
in turn expect to receive significant benefits" Mr. Haddon-Cave
added.
Turning to the effects of these developments on
Hong Kong's own trading position, the Financial Secretary said
that, although the prices of our imports from Japan can be
expected to rise to some extent this should be offset by
cheaper imports from the United States and perhaps a few other
countries. "Our export position should not be seriously
affected" he said, "particularly since there will be no change
in our exchange rates with most western European countries.
which together make up a growth area for our trade. It will
be more difficult to sell to the United States but, as these
new arrangements are intended to correct the large deficit in
the U.S. balance of payments, most countries will be similarly
Furthermore, textiles account for over 40% of our
exports to this market and these are, in any event, limited
by quota", Mr. Haddon-Cave said.
affected.
"Generally speaking" he said, "Hong Kong should continue
to maintain a strong trading position."
Commenting on the effects of the decision on the
general level of prices within Hong Kong the Financial Secretary
said, "As we estimate that the net effect on our import prices
/is