XN000022-1986-08-15 — Page 3

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FRIDAY, AUGUST 15, 1986

+UNDER OUR LINKED SYSTEM, THE PRESSURE ON THE HONG KONG DOLLAR RESULTING FROM IMBALANCES IN CAPITAL INFLOW OR OUTFLOW INEVITABLY FALLS ON THE INTEREST RATES. IT IS THEREFORE NATURAL IN THE PRESENT CIRCUMSTANCES TO ADJUST INTEREST RATES DOWNWARDS TO ASSIST IN MOVING THE HONG KONG DOLLAR EXCHANGE RATE CLOSER TO 7.80.

+WHILE THIS REDUCTION IN INTEREST RATES WILL BE WELCOMED BY BORROWERS, WE CANNOT YET BE CERTAIN WHETHER THE REDUCTION WILL BE SUSTAINABLE IN THE LONGER TERM. GIVEN THE LINKED SYSTEM, INTEREST RATES MUST RESPOND TO PRESSURES WHICH EMERGE IN THE FOREIGN EXCHANGE MARKET. THIS IS PART OF THE SYSTEM'S ADJUSTMENT PROCESS. THUS. WHETHER AND HOW LONG THE ADJUSTED LEVEL OF INTEREST RATES WILL BE MAINTAINABLE DEPENDS ON MOVEMENT OF INTEREST RATES INTERNATIONALLY, AND ON CAPITAL FLOWS. WE WILL JUST HAVE TO WAIT AND SEE.+

PROMOTIONS TO SENIOR RANKS

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THE GOVERNMENT ANNOUNCED TODAY (FRIDAY) THE FOLLOWING SUBSTANTIVE PROMOTIONS TO SENIOR RANKS IN THE ADMINISTRATIVE SERVICE

TO SECRETARY, GOVERNMENT SECRETARIAT

MR JOHN TODD

MR JOHN YAXLEY

MR RONALD BRIDGE

MR HARNAM GREWAL

MR AUGUSTINE CHUI

MR BARRIE WIGGHAM

SECRETARY FOR HOUSING

SECRETARY FOR ECONOMIC SERVICES

SECRETARY FOR EDUCATION AND MANPOWER (DESIGNATE)

SECRETARY FOR TRANSPORT

SECRETARY FOR MUNICIPAL SERVICES (DESIGNATE)

SECRETARY FOR GENERAL DUTIES (DESIGNATE)

TO ADMINISTRATIVE OFFICER STAFF GRADE A

DR JAMES HAYES

MR YEUNG KAI-YIN

MRS ANSON CHAN

REGIONAL SECRETARY (NEW TERRITORIES)

DIRECTOR OF INDUSTRY

DIRECTOR OF SOCIAL WELFARE

/MR MICHAEL