XN000022-1987-04-27 — Page 6

MONDAY, APRIL 27, 1987

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LINK SYSTEM WORKS WELL

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THE HONG KONG GOVERNMENT HAS NOT COME UNDER ANY PRESSURE TO STRENGTHEN ITS CURRENCY AND THE LINK WITH THE U.S. DOLLAR IS WORKING WELL, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID THIS (MONDAY) AFTERNOON.

WHILE ADMITTING THAT THE HONG KONG DOLLAR HAD BEEN TRADING VERY NEAR THE LINK RATE FOR SOME TIME AND OCCASSIONALLY CAME UNDER PRESSURE, MR JACOBS STRESSED IT WAS NOT SEVERE AND THE LINK WAS WORKING.

ANSWERING QUESTIONS AT A PRESS BRIEFING ON TRADE MATTERS, MR JACOBS REITERATED THAT THERE WAS NO REASON WHY THE LINK SHOULD NOT REMAIN UNTIL 1997 OR INDEED BEYOND AS HONG KONG WAS RESPONSIBLE FOR ITS OWN MONETARY AFFAIRS UNDER THE TERMS OF THE JOINT DECLARATION.

+ IT'S PERFECTLY NATURAL FOR THE DOMESTIC CURRENCY OF LITTLE HONG KONG TO BE LINKED TO ANOTHER MAJOR TRADING CURRENCY, + HE ADDED.

THE FINANCIAL SECRETARY SAID THEY HAD 4 +VERY USEFUL AND FRIENDLY EXCHANGE+ WITH THE U.S. SECRETARY OF COMMERCE, MR MALCOLM BALDRIGE, IN THE MCPNING,

HE ADDED THAT THE MEETING HAD COVERED A HOST OF SUBJECTS IN RELATION TO TRADE AND THE U.S. VIEWS ON DEVELOPMENTS IN TRADE GENERALLY, AS WELL AS ITS CONCERN ABOUT SOME MARKETS NOT BEING OPEN AND FAIR.

HE SAID SECRETARY BALDPIGE HAD STRESSED FAIR TRADE AND ASKED WHETHER HONG KONG SHOULD DO MORE TO PERSUADE ITS NEIGHBOURS TO OPEN UP THEIR MARKETS.

+I THINK THE BEST WAY FORWARD IS TO KEEP TALKING TO PEOPLE, KEEPING URGING THE CASE OF OPEN, FREE AND FAIR TRADE. I THINK THE MESSAGE IS GRADUALLY GETTING THROUGH, + MR JACOBS SAID.

HE ADDED THAT THE FORMER SECRETARY FOR TRADE AND INDUSTRY, MR ERIC HO, HAD COMPLETED & POUND OF VISITS, INCLUDING KOREA AND JAPAN, ARGUING THE CAUSE OF FREE, OPEN AND FAIR TRADE.

ASKED WHAT HONG KONG COULD DO EVEN AMERICANS COULD NOT PERSUADE JAPAN TO OPEN UP, MR JACCBS SAID:

+I THINK PERSUASION, CONSTANT DIRECT CONTACT, CONSTANT REFERENCE TO HOW WE HAVE PERHAPS BENEFITTED BY BEING SUCH AN OPEN ECONOMY, WE ARE A MARVELLOUS EXAMPLE OF HOW AN OPEN ECONOMY REALLY WORKS TO THE BENEFIT OF EVERYONE.+

ON WHETHER HONG KONG AGPEES WITH THE U.S. DEFINITION OF FAIR TRADE, THE SECRETARY FOR TRADE AND INDUSTRY, MR HAMISH MACLEON, SAID:

/+I THINK

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