XN000022-1972-06-22 — Page 10

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Thursday, June 22, 1972

NO PROPOSED RENT CONTROL FOR BUSINESS PREMISES

The Government is not proposing to introduce any form of rent

control for business premises at present.

This is contained in a letter from Mr. Akers-Jones writing on

behalf of the Colonial Secretary to the Chairman of the Reform Club, Mr.

Brook Bernacchi. It is in reply to the recent Reform Club petition to

the Governor on the subject of Rent Restriction and Protection from

Eviction especially of Business and Factory Premises.

Mr. Akers-Jones said that the degree of rent increases in business

premises does not warrant interference with the free market economy of Hong

Kong, nor do the estimates of the supply of new accommodation during the next

two years indicate that this will be necessary.

Rent increases in business premises are not a major cause of inflation;

the reverse is more likely to be true, he said.

"Your petition states that the value of the Hong Kong dollar is at present

unstable and that Hong Kong itself is going through a period of inflation hitherto

unknown in peace time. However, the facts do not bear out this contention."

Externally, he explained, the stability of the Hong Kong dollar has

been well maintained because of Hong Kong's strong balance of payments position,

The Hong Kong dollar, in fact, was upvalued against the United States dollar

in line with Sterling in the recent realignment of currencies.

/Internally,

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