GR 120
IC
OPY
SECRET
• HKK040/3.
2 7 AL 1962
SECRET
FM HONG KONG 26110OZ AUG 82
TO IMMEDIATE FCO
TELEGRAM NUMBER 941 OF 26 AUGUST
PERSONAL FOR CLIFT (HKGD)
IN
FURTHER TO MY TELEGRAM 911
15
ADDITIONAL COMMENTS ON ANNEX F FOR YOUR CONSIDERATION:
AT THE END OF PARAGRAPH 10 ADD: QUOTE THE BANK OF CHINA IS ALMOST CERTAINLY THE LARGEST BUYER OF FOREIGN CURRENCY IN HONG KONG FOR, IN CHINA'S EYES, THAT IS THE PURPOSE HONG KONG SERVES. IT COULD, THEREFORE, TERMPORARILY LESSEN THE IMPACT ON THE FOREIGN EXCHANGE MARKET BY HOLDING BACK FROM BUYING FOREIGN CURRENCY AND EVEN SELLING INTO THE MARKET. BUT IT IS MOST UNLIKELY THAT THE BANK COULD HOLD BACK, OR INTERVENE, FOR VERY LONG UNQUOTE.
2. AT THE END OF PARAGRAPH 12 ADD: QUOTE IT GOES WITHOUT SAYING THAT ANY REFUSAL TO PROVDE GUARANTEES BECAUSE OF THE THREAT
TO ECGD'S RESERVES WOULD ITSELF HAVE FAR REACHING EFFECTS. THIS POINT BECOMES RELEVANT IF A DECISION IS TAKEN BY THE MTRC TO GO AHEAD WITH THE EAST KOWLOON AND JUNK BAY LINES UNQUOTE.
3. AT THE END OF PARGRAPH 15 ADD: QUOTE OR, INCLUDE, WITH THE OTHER CENTRAL BANKS WITH WHICH THE EXCHANGE FUND HOLDS DEPOSITS AND
SECURITIES UNQUOTE.
YOUDE
MINIMAL
HD / HK NG D
COPIES то
MR RUSHFORD LEGAL ADVISER
SECRET
Pim 619
28
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