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WEDNESDAY, JUNE 26, 1985
+NONE OF THESE ORIGINAL REASONS FOR THE ORDINANCE REMAINS VAL ID, HE SAID.
STAMP DUTY WAS NO LONGER LEVIED ON THE NOTE ISSUE AND IN THIS DAY AND AGE THE POSSIBLE CIRCULATION OF FOREIGN NOTES WITH UNCERTAIN BACKING IN TERMS OF PRECIOUS METAL OR OTHER SECURITY WAS ALSO NO LONGER A PRACTICAL CONCERN.
DURING THE PAST 72 YEARS, MR BROWN SAID, HONG KONG HAD UNDERGONE A SIGNIFICANT FACELIFT BOTH ECONOMICALLY AND PHYSICALLY.
FROM A SMALL ENTREPOT, HONG KONG HAD TRANSFORMED INTO ONE OF THE WORLD'S MAJOR FINANCIAL CENTRES AND A POPULAR TOURIST RESORT PATRONISED BY OVER THREE MILLION VISITORS PER YEAR.
LAST YEAR ALONE, HONG KONG EARNED AN ESTIMATED $13 700 MILLION FROM THE TOURIST TRADE.
+ IT IS NOT UNCOMMON FOR BUSINESSES TO TAKE PAYMENTS IN FOREIGN CURRENCIES, A PRACTICE WHICH IS IN PRINCIPLE ENTIRELY ACCEPTABLE BUT TECHNICALLY UNLAWFUL UNDER THE EXISTING LAW.
+THEREFORE, THERE IS OBVIOUSLY A NEED TO LEGALISE THE POSITIONS OF THOSE WHO TAKE PAYMENT IN FOREIGN CURRENCIES ESPECIALLY SINCE THE GOVERNMENT HAS NOT FOR MANY YEARS RESOLUTELY ENFORCED THE PROHIBITION. +
MR BROWN SAID SOME STILL FELT THAT THE FREE CIRCULATION OF FOREIGN CURRENCIES MIGHT AFFECT CONFIDENCE IN THE HONG KONG DOLLAR.
+ IF I BELIEVE THAT I WOULD ALSO BE WORRIED, BUT I DO NOT BELIEVE IT,+ HE SAID.
1
SINCE THE SIGNING OF THE SINO-BRITISH AGREEMENT, THE LOCAL CURRENCY HAD REMAINED STABLE AND WAS GROWING STRONGER EVERY DAY, A SITUATION WHICH WAS UNLIKELY TO BE ALTERED BY THE PASSAGE OF THIS BILL.
+ IN ANY CASE, SHOULD HONG KONG, IN THE UNLIKLY EVENT, FACE ANOTHER CURRENCY CRISIS WHICH AMOUNTED TO A COLLAPSE IN THE CONFIDENCE OF THE HONG KONG DOLLAR, VERY MUCH DOUBT THAT THE EXISTENCE OF THIS ORDINANCE COULD DO MUCH TO ALLEVIATE THE SITUATION, MR BROWN SAID,
IT CERTAINLY HAD LITTLE EFFECT ON THE 1983 CURRENCY CRISIS WHICH WAS ONLY DEFUSED BY PEGGING THE LOCAL CURRENCY TO THE U.S. DOLLAR.
+1 AM SATISFIED THAT THERE ARE ADEQUATE SAFEGUARDS IN OUR MONETARY SYSTEM TO PROTECT THE STATUS OF THE HONG KONG DOLLAR WHICH WOULD, CONTRARY TO POPULAR BELIEF, REMAIN THE ONLY LEGAL TENDER OF THE TERRITORY EVEN AFTER THE REPEAL BILL IS PASSED BY THIS COUNCIL, HE SAID.
'HE SAID