TNAG-0123-FCO40-159-Future-of-Hong-Kong-1971 — Page 110

ᄂ

T-S

(Steel's letter of 21 January)

References are to paragraphs in the Report

Faragraph 7:

Paragraph 8:

amendment accepted.

(hyphon)

Delete "comparatively modest.

amendment accepted. Delete third and fourth

sentences and substitute -

"It is in our interest that Hong Kong's reserves

should continue to be held in sterling and for the years immediately ahead this has been ensured in the sterling agreement. in view, however, of Hong Kong's special position as a trading and

entrepot centre special arrangements permitting a

free market in U.S. dollers have been made.”

Substitute "could for

Paragraph 77: (1) tense changes accepted.

んね

A

"cannot" and "should" for "shall" in the first line

of the last sentence.

(2) we ere reluctant to omit the words (at the end of

this paragraph) "and which are in any case equivalent to only one and a half times China's annual earnings of foreign exchange through

Hong Kong."

This evaluation of the worth to

China of Long Kong's sterling assets is relevant

to their une as a bargaining counter.

Conclusions

(e) Amendment accepted.

Substitute "see maintained"

for "retain" in lest sentence.

(c) amendment accepted. Delete first two sentences

and substitute: "But Hong Kong could become a najor liability if, as expected, its economy begins

to run down towards the end of the lease or as a

result of Chinese pressures.

警器

that we coved prefer it in the following fom. I

(w) amendment accepted, Insert

L

вителя

as it may" after

"run down" in the last sentence.

Recommendation (3):

стова спробовать

with Conclusion (w) alme amendment accepted in revised form. ¿ Insert "as expected" after "

after "run down" in the last line.