XN000022-1988-02-06 — Page 2

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SATURDAY, FEBRUARY 6, 1988

HK'S EXCHANGE RATE REFLECTS UNDERLYING ECONOMIC FUNDAMENTALS

HONG KONG'S EXCHANGE RATE FULLY REFLECTS THE TERRITORY'S UNDERLYING ECONOMIC FUNDAMENTALS, THE DEPUTY SECRETARY FOR MONETARY AFFAIRS, MR JOSEPH YAM, SAID TODAY (SATURDAY).

IN RESPONSE TO COMMENTS MADE BY THE U.S. TRADE REPRESENTATIVE, MR CLAYTON YEUTTER, YESTERDAY ON THE EXCHANGE RATES, MR YAM SAID HONG KONG DID NOT RUN A VISIBLE TRADE SURPLUS OVERALL.

"THERE IS FULL EMPLOYMENT, BUOYANT ECONOMIC GROWTH AND A REASONABLE RATE OF INFLATION, A REVALUATION OF THE HONG KONG DOLLAR WOULD THROW HONG KONG'S ECONOMY OFF BALANCE, HE SAID.

"

MR YAM SAID A REVALUATION WOULD NOT HELP TO REDUCE V.S TRADE DEFICIT WITH HONG KONG.

HE POINTED OUT THAT OVER THE TWO YEARS (1986 AND 1987) THE SOUTH KOREAN WON AND THE NEW TAIWAN DOLLAR APPRECIATED AGAINST THE U.S. DOLLAR BY 12 PER CENT AND 41 PER CENT RESPECTIVELY.

1987

THAT

FROM

BUT U.S. TRADE DEFICIT WITH SOUTH KOREA AND TAIWAN, ACCORDING TO FIGURES FROM THE U.S. DEPARTMENT OF COMMERCE, GREW RAPIDLY IN BY 36 PER CENT AND 21 PER CENT RESPECTIVELY, MR YAM SAID, ADDING BY CONTRAST, U.S. TRADE DEFICIT WITH HONG KONG, USING FIGURES THE SAME SOURCE, GREW BY ONLY 2 PER CENT.

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ANTI-SMOKING CAMPAIGN ACHIEVES CONSIDERABLE SUCCESS

THE ANTI-SMOKING CAMPAIGN HAS ACHIEVED CONSIDERABLE SUCCESS SINCE IT STARTED IN 1981 AS EVIDENCED BY A DROP OF 19 PER CENT IN THE NUMBER OF DAILY SMOKERS BETWEEN 1982 AND 1986.

SPEAKING AT THE OPENING CEREMONY OF AN ANTI-SMOKING EXHIBITION AT THE MACPHERSON PLAYGROUND TODAY (SATURDAY), THE SECRETARY FOR HEALTH AND WELFARE, MR JOHN CHAMBERS, NOTED THAT THE NUMBER OF OCCASIONAL SMOKERS ALSO FELL BY 21 PER CENT FROM 210,000 IN 1984 ΤΟ 169,000 IN 1986.

THE EXHIBITION WAS JOINTLY ORGANISED BY THE MONG KOK DISTRICT BOARD AND THE HONG KONG COUNCIL ON SMOKING AND HEALTH.

MR CHAMBERS SAID IT APPEARED THAT NEARLY HALF OF THOSE WHO STOPPED SMOKING DID SO WITHOUT ANY ADVICE FROM DOCTORS.

/"THIS INDICATES