TNAG-0368-FCO40-414-Visits-of-UK-Government-Ministers-to-Hong-Kong-1973 — Page 31

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

apart from its harbour and the skill of its work-

people. The harbour has developed into a major

shipping centre in the Far East and is a port of

the principal

call on a dejer shipping routes in the region.

important

Similarly, Kai Tak airport is a major air traffic

centre in the area.

5. Hong Kong's position as an important traffic

centre, together with her status as a duty free port.

has benefitted her considerably. In addition to her

also

_visible trade, Hong Kong is an important finance and

banking centre. In his budget of 28 February the

Financial Secretary, Mr Haddon-Cave, proposed to

exempt from withholding tax interest paid on foreign

currency deposits. This is to encourage the

development of Hong Kong as an international

financial centre.

scen

6. In recent months Hong Kong's Stock Exchanges

have become subject to tremendous activity which has

Lands

led to boom share conditions. Stock changes at a Level

wede out of all proportion to its inherent value.

This could lead to a dangerous situation and it is

being closely watched by the Governor.

STERLING

7. The Hong Kong Government originally calculated

that they had lost about £70

-

£80 million as a

direct consequence of the floating of the pound. То

this must now be added about £30 million following

the devaluation of the US dollar and the subsequent

/further

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