TNAG-0051-FCO40-87-Secretary-of-State-s-television-interview-about-Hong-Kong-1967 — Page 19

(2)

Does the Minister see any serious falling-off of

investment in Hong Kong due to riots and civil disturbance?

Clearly, the disturbances which have been occurring

in Hong Kong are bound to have some effect on the economy.

Initially there was, quite naturally, some nervousness among

businessmen, tourists, those who had money in the banks.

It does not take much to make "hot" money move, as we know

in London. Withdrawal of deposits from the banks was at a

fairly high rate in May and June but by August had almost

ceased and since then there have been clear indications that

money is flowing back into the banks.

In short, confidence has been restored.

The economy

is buoyant. So far this year the value of domestic exports,

and this is what the Colony depends on, has reached the

highest figure ever recorded over the corresponding period

in any previous year. This is a remarkable achievement.

Banking statistics for September show that deposits

rose during the month by over 35 million Hong Kong dollars which

is the first increase since April. At the same time banks'

net assets abroad increased by 133 million dollars.

the

Money resources increased by 70 million Hong Kong dollars

and/public reduced their holding of bank notes by 18.5 million

dollars compared with 12 million in August7.