TNAG-0171-FCO40-207-Effect-of-UK-s-economic-measures-on-exports-from-Hong-Kong-1969 — Page 19

W(B)L 51-74 33

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

-Top Secret

Secret.

Confidential. Restricted. Unclassified.......

PRIVACY MARKING

In Confidence

DRAFT Internal Minute

Type 1+44

To:-

From

Sir Arthur Snelling

W. S. Carter

Telephone No. & Ext.

Department

Yesterday we discussed briefly on the

telephone the reaction in Hong Kong to the

import deposit scheme which we are introducing.

I told you that the banks in Hong Kong were

at this time highly liquid and in a strong

position to finance the deposits which will

now become payable on Hong Kong imports into

this country. If the Hong Kong banks are

by one means or another able to finance these

deposits, then the impact upon the Colony's

trade with the United Kingdom will not be

too severe. Of course the cost of their

products imported into this country will be

increased by the cost of the necessary eposit

finance, but on the face of it that will be

all. On the other hand, if the banks were

debarred by Exchange Control Regulations from

frinncing Jelaporto this, the effect on the Colony's trade

RECEIVED IN REGISTRY NO 51

-1 MAY 1969

HK/6/548

would be very severe indeed.

LHK

The value of a

Has bee

A

year's export trade to the United Kingdom is at present₤95 2 15% percent of her total export

trade.

2. Among the first questions therefore,

which Hong Kong asked us through the Hong

Kong Government Office in London when the

new measures were announced was whether this

form of finance would be permitted.

The Hong

/Kong banks