TNAG-1247-FCO40-1561-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 19

from London and Peking, which would restore public confidence

and curb speculative activities.

(c)

(d)

Measures to be taken by the Hong Kong Government to;

(i) curb speculation;

(ii) extend preferential loans to manufacturers; (iii) give positive assistance to the export industry.

Levying tax on foreign currency deposits as well as on

Hong Kong dollar deposits.

On the Hong Kong Association of Bank's decision to try to halt

the slide in the Hong Kong dollar by increasing interest rates by

28:

(a) A number of papers said this was a necessary but

stop-gap measure;

(b) Others thought it would have only partial impact;

(c)

One, (the left of centre, TIN TIN Daily News) predicted

adverse effects on commerce, industry and property markets, thus delaying economic recovery.

2.HONG KONG GOVERNOR'S TELEVISION INTERVIEW, 20 MAY

(Hong Kong Telno 721 refers)

Virtually all major independent and right wing papers

commented on the Governor's remarks on Hong Kong's future.

Evening Post was the only left wing paper to do so.

The New

The main points made were that:

(a) The Governor has a deep understanding of local

aspirations;

(b)

(c)

It was reassuring to hear him say that an acceptable settlement would be reached on Hong Kong;

The Governor's confidence about (b) above, is well

founded;

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