TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 125

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OINTS TO MAKE

Sino British Talks

Fifth round in second phase of Sino-British talks on HongKong's future held in Peking on 19/20 October. Described in joint

communiqué as useful and constructive. Will reconvene 14/15 November.

Hong Kong Stock Market and Dollar Exchange Rate

On 15 October, Hong Kong Government took certain measures to stabilise

the Hong Kong dollar. Key element was indirect pegging of Hong Kong dollar to US dollar at rate of Hong Kong $7.80=US$1, and abolition of local tax paid on Hong Kong dollar deposits. market responding well.

Currency and stock