TNAG-1270-FCO40-1620-Financial-policy-in-Hong-Kong-1983 — Page 21

Draft

sent to DTI.

PA

(92)

10017

DSR 11C

SECRETARY OF STATE FOR TRADE AND INDUSTRY: INTERVIEW WITH

RTHK (28/10)

POINTS TO MAKE

HICK

100/7.

RECEIVED IN REGISTRY

260CT 1983

GISTRY

inking of Hong Kong Dollar to US Dollar (Defensive)

Decision to take measures to stabilise Hong Kong Dollar

was one for the Hong Kong Government. HMG have full

confidence in judgement of the Governor and his advisers.

1

2. Measures have so far had desired effect. Hong Kong

Dollar stood at $8.34 to the US Dollar on 13 October, the

last trading day before the Financial Secretary's

announcement.

It rose to the fixed rate of $7.80 on 20

October and has stabilised at around that level.

[IF PRESSED ON EXTENT OF PRIOR CONSULTATION WITH HMG, BANK OF ENGLAND OFFICIALS VISITING HONG KONG ETC]

3. I understand that HMG was kept informed by the

Hong Kong Government of its intention to take measures to

I am not aware of what form

stabilise the Hong Kong Dollar. [I this consultation took k.]

Future of Hong Kong

4. Future of Hong Kong essentially a matter for Foreign

and Commonwealth Secretary. Encouraging that second phase

of talks under way with common aim of maintaining Hong Kong':

stability and prosperity. This common aim gives grounds for

confidence that a satisfactory negotiated settlement can be

reached.