TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 173

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- 9.

(1) the attitude of the Overseas Chinese who provide the

dynamism, which is Hong Kong:

(2) the constitutional position.

The Overseas Chinese operate, and have close links, throughout the

whole of the Far East outside the Bamboo Curtain, and their drive to

expand and diversify in any one territory is greatly dependent on

freedom from control, particularly over foreign exchange operations

Innovations, such as the issue of local paper and the institution of

lender of last resort facilities, would no doubt be acceptable, but

the local community would probably look askance at any controls as

such although the repercussions of the stock exchange speculation

might have tempered their attitude. On the other hand, the Chinese

who matter, i.e. those in the Executive and Legislative Councils together with the lobbyists (both Chinese and British) are probably

amongst those who were astute in playing the market and emerged with

several more millions to add to their existing fortunes. The Overseas

Chinese are primarily interested in the furtherance of their

wealth.

outside Hong Kong.

If they thought that controls would seriously affect that

aim there is little doubt that they would employ part of their capital

If this were to happen on a substantial scale the

further progress of the economy would be retarded with repercussions

in terms of employment, wages and, consequently, of internal

possibly also external

carefully.

and

Ma

politics. Thus, one needs to tread

As to the constitutional position, Hong Kong is a Crown

Colony under the direct rule of H.M.G. and, in theory, the Governor

has only limited powers. In practice, however, H.M.G. seldom, if

ever, interfere in internal matters. This being so, the Executive

Council, although performing only an advisory function, has considerable