TNAG-1263-FCO40-1606-Parliamentary-contacts-on-the-future-of-Hong-Kong-1983 — Page 45

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

SECRET

So. We have conceded nothing.

Hong Kong Dollar and Stock Market

14. Cumulative effect of Chinese propaganda has produced sharp falls in Hong Kong's stock market and dollar exchange rate despite underlying strength of economy. Measures introduced by Hong Kong Government late September to help stabilise local currency. Further important measures on 15 October. Key element is indirect linking of Hong Kong dollar to US dollar. Working well so far.

Parliamentary interest

15. Realise renewed Parliamentary interest. Hope Parliament will understand delicacy of problem and fragility of confidence in Hong Kong. Important nothing said in public which may affect confidence or make task of negotiations more difficult. Confidential negotiation in calm atmosphere offers best prospect of successful

outcome.

16.

SECRET

THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED FOR 40 YEARS UNDER FOI EXEMPTION No.....27(1)

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