TNAG-1247-FCO40-1561-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 33

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EM HONG KONG 2606452 MÁY 83

TO ROUTINE FCO

TELEGRAM NUMBER 725 OF 26 MAY 1983

INFO ROUTINE PEKING

HKK04012

RECEIVED IN REGISTRY NO. 51 - 7 JUN 1983

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INDEX

REGISTRY

Ayi Takan

FUTURE OF HONG KONG: PRESS COVERAGE

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C7128/6

THE TWO MAIN COMMUNIST NEWSPAPERS, WEN WEI PO AND TA KUNG PAO, TODAY TOOK AS THEIR FRONT PAGE LEADS AN INTERVIEW WITH THE GENERAL MANAGER OF THE LOCAL BRANCH OF THE BANK OF CHINA, JIANG WENGUI.

2. JIANG URGED THE GOVERNMENT TO ABOLISH THE 10 PER CENT WITHHOLDING TAX ON LOCAL HK DOLLAR DEPOSITS TO PREVENT FURTHER SLIDES IN THE CURRENCY FROM DAMAGING HONG KONG'S PROSPERITY AND THE LIVELIHOOD OF ITS RESIDENTS. HE DENIED THAT THE SLUMP REFLECTED AN EROSION OF CONFIDENCE OVER THE FUTURE, MAINTAINING THAT THE PROSPECTS FOR 1997 WERE GOOD. INSTEAD HE BLAMED THE RECENT CURRENCY SLIDE ON A SMALL NUMBER OF SPECULATORS WHO WERE CAPITALISING ON THE STRENGTH OF THE US DOLLAR.

3. BOTH PAPERS COMMENTED EDITORIALLY, ECHOING JIANG'S CALL FOR GOVERNMENT INTERVENTION. WEN WEI PO MAINTAINED THAT THE TIME HAD COME FOR THE GOVERNMENT TO TAKE POSITIVE ACTION TO MAINTAIN HONG KONG'S STABILITY AND PROSPERITY AND TO DEMONSTRATE ITS QUOTE UNIQUE EFFICIENCY IN ADMINISTRATION UNQUOTE.

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FUTURE OF HONG KÒNG

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