2
THURSDAY, OCTOBER 22, 1987
AND
I
SEAL
I CALLED THIS MORNING ON THE NEW SECRETARY OF COMMERCE WAS INTERESTED TO SEE THAT THE DEPARTMENT OF COMMERCE HAS AS ITS THE LOWER PART OF A LIGHTHOUSE, AND AS I POINTED OUT TO THE SECRETARY, A BEACON FOR FREE TRADE, THAT LIGHTHOUSE IS HONG KONG, SHINING AS TOGETHER WITH SINGAPORE AND THE FAR EAST.
I DO BELIEVE THAT HONG KONG'S POSITION AS THE CLASSIC TOGETHER WITH SINGAPORE, OF A GENUINE FREE TRADING SOCIETY, UNDERSTOOD BY THOSE WHO FOLLOW THESE MATTERS CLOSELY.
EXAMPLE, IS WIDELY
ARE ACTUALLY OUR CONCERN, IN A PLACE LIKE HONG KONG, WHERE WE
WANT A LOT OF DOING ALL THOSE THINGS WHICH THE UNITED STATES WOULD
THE WASH OF ATTEMPTS TO OPEN UP OTHER MARKETS TO DO, IS THAT IN OTHER MARKETS, WE, A FREE TRADING SOCIETY, MIGHT INADVERTENTLY SUFFER.
UNDERSTOOD BY THOSE WHO I THINK THAT IS THOSE PROBLEMS ARE WELL
MESSAGE KNOW THE DETAIL OF THE SUBJECT. I WOULD LIKE TO HOPE THAT THE WILL GET ACROSS WIDELY IN THE COMMUNITY AS WELL.
MR
EXCHANGE RATES WITH U.S. DISCUSS DID YOU MOLLISON:
OUTCOME? DO YOU
MORE WAS THE
ENVISION A OFFICIALS? IF SO, WHAT IMPORTANT ROLE FOR THE HONG KONG DOLLAR, IN INTERNATIONAL FINANCE?
THE PEGGING OF IN THE MEETINGS OF REFERRRED TO IT DURING MY WE WERE ABOUT
SIR DAVID: THE QUESTION OF EXCHANGE RATES AND THE HONG KONG DOLLAR TO THE U.S. DOLLAR CAME UP
SECRETARY) BAKER THE IMF WHEN MR
(U.S. TREASURY PUBLICLY IN A SPEECH, AND THAT SUBJECT HAS BEEN TOUCHED ON
IN 1983, WHEN WE PEGGED MERTINGS. I'VE EXPLAINED THAT SUFFERING A VERY SHARP ECONOMIC DOWNTURN, POLITICAL UNCERTAINTY THE FUTURE, AND OUR CURRENCY WAS GOING WILD.
WITH THE FOLLOWING THAT PEGGING, THE HONG KONG DOLLAR WENT UP
DID NOT PEG IN U.S. DOLLAR. SO WE TOOK ALL THOSE DISADVANTAGES. WE
WITH THE ORDER TO GET ANY FOREIGN TRADE ADVANTAGE. WE HAVE COME DOWN
WE TOKEN,
HAVE GAINED SOME U.S. DOLLAR AND, TO AN EXTENT, BY THAT
TRADE SURPLUS AS A RESULT. BENEFIT. BUT, WE HAVE NOT BUILT UP ANY
ITSELF OUT. BALANCES BEING A TOTALLY FREE AND OPEN MARKET,
ON OUR OVERALL INDEED, THIS YEAR WE EXPECT TO HAVE A SLIGHT DEFICIT FOREIGN TRADE.
IT
AND THE IMPORTANCE
INTEND то
MOVE
I'VE EXPLAINED THAT, GIVEN THESE REASONS, OF THE STABILITY OF THE HONG KONG DOLLAR, WE DID NOT FROM OUR PRESENT PEGGING.
THE
I
THE SECOND PART OF THE QUESTION, MR CHAIRMAN, DO WE EXPECT HONG KONG DOLLAR ITSELF TO PLAY A LARGER ROLE IN FOREIGN TRADE, NO,
THE U.S. DOLLAR BECAUSE WOULDN'T HAVE THOUGHT SO, AND WE PEGGED TO THAT IS OUR MAIN TRADING CURRENCY, AS IT IS FOR MANY OTHER PEOPLE.
/MR MOLLISON: