TNAG-0065-FCO40-101-Local-intelligence-reports-1968 — Page 152

0003160 G.F. 316

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ECONOMIC

27.

The disturbances not unnaturally caused some uneasiness

especially in business circles which was reflected in the Stock

Exchange closing on 16th May (it re-opened on 29th May with share

prices 15% to 20% down) a rise in gold prices and U.S. dollars and

fairly heavy withdrawals of notes from the banks including Communist

banks. By the end of the month the bank note issue had been

increased from 41,883 million to $2,443 million but $184 million

represented increased holdings by the banks in their tills kept as a

safeguard against a run developing (a minor run on N.T. branches of

the Hongkong & Shanghai Banking Corporation inspired by Communist

rumours did in fact develop but was soon put down). It is estimated

that under $200 million (or less than 1.9% of total deposits and

notes) of capital left the Colony. Apart from the to factories

previously mentioned there was virtually no dislocation of industry.

Trade remained buoyant with imports, exports, and re-exports up by

16.1%, 16.5% and 22.5% respectively over May 1966.

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