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WEDNESDAY, MARCH 19, 1975
BUT THIS WOULD BE INSUFFICIENT EVEN TO COVER THE FORECAST DEFICIT OF $2,200 MILLION IN 1976/77. IN ANY CASE, NOBODY WOULD DISAGREE THAT THERE IS A LIMIT TO WHICH WE SHOULD BE IN DEBT.+
ON THE STRENGTH OF THE HONG KONG DOLLAR, HE SAID ITS FLOATING WAS SOMETHING THAT CANNOT BE AVOIDED DUE TO THE WEAKNESS OF THE U.S. DOLLAR TO WHICH HONG KONG WAS LINKED.
THE CONTINUOUS INTERVENTION BY THE GOVERNMENT AND BANKS AS WELL AS THE RECENT DRASTIC REDUCTIONS IN INTEREST RATES HAVE WORKED EFFECTIVELY AT PRESENT TO CHECK THE FURTHER ADVANCE OF THE HONG KONG DOLLAR TO A MORE ACCEPTABLE LEVEL, DUT BASICALLY THE RATE MUST DEPEND, LIKE ANY OTHER COMMODITY, ON DEMAND AND SUPPLY.
REFIXING NOW WOULD NOT SERVE ANY USEFUL PURPOSE AS LONG AS THE PRINCIPAL GURRENCIES ARE STILL FLOATING.
IN MANY OTHER OCCASIONS IN THE PAST, THE VALUE OF THE HONG KONG DOLLAR HAD TO ADVANCE QUITE WIDELY AND YET HONG KONG HAD DEEN ABLE TO DEAL WITH THE SITUATION QUITE SUCCESSFULLY.
THE SAME HAD HAPPENED TO WEST GERMANY, JAPAN AND A FEW OTHER COUNTRIES. THEREFORE, HONG KONG DUSINESS HOULD NOT BE TOO BADLY AFFECTED BY THE RATES AS LONG AS THERE ARE DEMAND FOR OUR GOODS, HE SAID,
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