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Both papers commented editorially on the issue. Wen Wei said speculation in foreign exchange had now reached a stage where it would damage HK's stability and prosperity. It said sarcastically that Government must take quick and bold measures to stop these activities as it did in introducing tax increases on cigarettes, alcohol and car licence fees.
It was time for the Government to take measures to maintain HK's stability and prosperity and to show its unique efficiency in administration. Along a similar line, Ta Kung in its leading article urged the Government to take firm action against foreign exchange speculators. The paper attributed the weakness of the HK dollar to the following three factors: (1) the inflation rate in HK was far higher than in American and European countries; (2) the Government made a mistake in not waiving the withholding tax on HK dollar deposits when it decided to exempt foreign currency deposits from interest tax: and (3) speculation in the foreign exchange market. The New Evening Post joined Wen Wei and Ta Kung in calling on the government to take all necessary measures to prop up the HK dollar.
Earlier, Kung Sheung Daily News quoted the chairman of the Gold and Silver Exchange, Mr. Wu Hon-fai, as saying that the largest buyer of the American dollar was the Bank of China arising from seasonal demand for the greenback in order to settle its international trade payments. He did not regard these purchases as speculative, although he thought there were a few speculators in the market.
Meanwhile, several papers reported the Acting Financial Secretary, Mr. Douglas Blye, as saying that the Government would take stringent measures against speculative activities in foreign exchange. He said the Government was still studying the possibility of waiving interest tax on local unit deposits but the Government would not make a decision immediately.
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HK DELEGATION OF PROFESSIONALS:
There have been more news and views about the HK delegation of professionals. The Oriental Daily News and HK Economic Journal quoted the leader, Mr. Allen Lee, as saying that the memorandum which they put forward to the Chinese leaders had been made. available to the HK Government for submission to the British Government. Mr. Lee said
during the visit Mr. Xi Zhongxun had said their views should also be reflected to the British Government.
Ta Kung Pao published an interview with Mr. Lee. He was quoted as saying that HK residents were worried that a change in China's policies would affect HK's economy. Now mainland China's policies had been laid down, they would not be subject to frequent changes. In view of this, he was confident about HK's prosperity and stability. He also said Chinese leaders and people in the country were aware of the catastrophe brought about by the Cultural Revolution and understood that existing economic policies would make China strong and affluent. He was delighted to see that there was great improvement in the living standards of Chinese people as a result of economic developments in the country. The paper
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