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RESTRICTED
22384
1
STABILISE THE SITUATION AFTER THE HONG KONG DOLLAR FELL TO
DOLLARS 9.50 (EXCHANGE RATE INDEX 57.2) ON 24 SEPTEMBER. ON
30 SEPTEMBER, THE DOLLAR HAD RISEN TO 8.17 (ERI 65.3) BEFORE
SLIDING AGAIN THIS WEEK IN RESPONSE TO HARDLINE CHINESE
STATEMENTS LAST WEEKEND.
FOR DEFENSIVE USE.
(E) ON 27 SEPTEMBER THE HONG KONG GOVERNMENT PASSED EMERGENCY
LEGISLATION TO ACQUIRE THE HANG LUNG BANK WHICH HAD BEEN UNDER
PRESSURE FOR 12 MONTHS. THE PROBLEM IS ESSENTIALLY ONE OF
POOR MANAGEMENT. MEASURES HAVE ALSO BEEN TAKEN TO SUPPORT
THE SUN HUNG KAI BANK: MERRILL LYNCH AND PARIBAS HAVE
INCREASED THEIR SHAREHOLDING TO 51 PER CENT, AND HONG KONG
DOLLARS 200 MILLION OF NEW FUNDS HAVE BEEN INJECTED TO HELP
LIQUIDITY. ON 3 OCTOBER, 2 SENIOR EXECUTIVES OF THE CARRIAN
PROPERTY GROUP WERE ARRESTED AND CHARGED WITH MAKING FALSE
AND MISLEADING STATEMENTS. THE GROUP HAVE BEEN IN
DIFFICULTIES SINCE THE PROPERTY MARKET FELL LAST YEAR.
HOWE
FUTURE OF HONG KONG
LIMITED
HD/HKD
COPIES TO
SIR IAN SINCLAIR LEGAL ADVISER
MR BURROWS
HD/FED
- www
HD SPD
MR ROBERTS
HD/PLANNING STAFF
HD/PUSD
MR MARTIN
PS
MR FLOWER
MR COLES
PS/LADY YOUNG
PS/MR LUCE
PS/PUS
SIR J BULLARD
MR GIFFARD
MR DONALD
MR WRIGHT
SIR A PARSONS
LEGAL ADVISER
NEWS D
ASSESSMENTS STAFF
CABINET OFFICE
PUSD
NO 10 DOWNING STREET
NO 10 DOWNING STREET
MR WALKER RESEARCH D OAB 2/82
RESTRICTED
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