TNAG-1270-FCO40-1620-Financial-policy-in-Hong-Kong-1983 — Page 164

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CONCLUSION.

28. THIS SCHEME COULD, WITH THE AGREEMENT OF THE NOTE-ISSUING BANKS, BE IMPLEMENTED VERY QUICKLY. NO ALTERNATIVE HAS BEEN SUGGESTED, THE POTENTHAL COST TO GOVERNMENT IS NOT EXESSIVE. AT BEST THE SCHEME WOULD SUCCEED IN STABULKSING THE EXCHANGE RATE AT ONLY MODEST OR NEGLIGIBLE COST TO THE REAL ECONOMY. AT WORST, CONF-NDENCE LN THE CURRENCY WOULD NOT BE FULLY RESTORED AND THE MONETARY CONTRACTION MAGHT CONSEQUENTLY BE TENSE. AT THAT STAGE A DECISION COULD BE TAKEN EITHER TO ACCEPT AND INDEED ENCOURAGE DEMONETISATION, OR TO ABANDON THE SCHEME. EVEN WITH THIS WORST SCENARIO, HT IS DIFFICULT TO IMAGINE THAT WE WOULD BE UN A MORE PARLOUS STATE THAN WE ARE AT PRESENT.

YOUDE

LIMITED

MD | HKD

MR GIFFARD

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