Kong banks in London had been alarmed by
a Treasury notice to the effect that under
Exchange Control Regulations prior approval Would be
was required before overseas remittances
could be used to pay the import deposit
charges. But after consultation with the
Treasury, at working level, we were able to
tell the Hong Kong Government Office that
overseas finance could be used for this
purpose "for the time being".
This is
reassuring, but on the other hand there are
indications that it may not be the end of
N.P
it.
://
How long Hong Kong, and presumably
other exporting countries, will be permitted
to minimise the effect of our measures on their
trade by these means, must depend we suppose
there
on the purose of what measures are designed
bern
to serve. If they have enacted to suppress
Λ
import demand in the United Kingdom they
will presumably not avail if the flow of
imports continues unabated, except to the
limited extent that the cost of imported
goods will somewhatineroase.
On the other
hand, if the credit restrictions are
vigorously applied to the banks in this
country, but overseas finance continues to
flow into the Treasury to pay the deposit
charges, the balance of payments will clearly show a short term
benefit.
There are signs that we have not
made up our minds which of these two purposes
we wish to achieve. For the time being
ascoroavily
I suppose, they are not mutually contradictory,
But to take other examples than Hong Kong
wed
see in the press that the Irish Government
NOTHING TO BE WRITTEN IN THIS MARGIN
allast attront to any great retent &
/has moved
-
No comments yet.
Private notes are available after approval.