TNAG-1270-FCO40-1620-Financial-policy-in-Hong-Kong-1983 — Page 50

Mr Roberts

News Department

SECRET

HKK 100/7

KECEIVED IN REGISTRY NO. 51

20 OCT 1983

DESK

INDEX

KENSTAY

ction Taken

76

HONG KONG: FINANCIAL MEASURES

1.

We spoke on the telephone about the announcement to be made tomorrow by the Hong Kong Government about the introduction of measures designed to stabilize the Hong Kong dollar.

2. We agreed that News Department would need a line to take in response to press enquiries. The following line has been discussed with the Treasury and cleared with Mr Holmes:

(i)

the measures taken by the Hong Kong Government were a matter for them;

(ii) but the British Government has been kept informed; (iii)Ministers have full confidence in the judgement of

the Governor and of his advisers in this connection.

If any

3. If News Department is asked whether HMG was consulted about the measures, we suggest that you reiterate (ii) above. questioner asks for confirmation that Mr Goodhart of the Bank of England visited Hong Kong recently, he should be referred to the Bank. If we are pressed to confirm that a Treasury official has also visited Hong Kong recently, you should say no more than that he was in Hong Kong to acquaint himself with the economic situation there.

4. I understand that both No 10 and the Treasury intend to direct any enquirers to the FCO.

14 October 1983

cc: PS

PS/Mr Luce

PUS

Mr Donald

Mr Clift

Cotum

CO Hum

Hong Kong Department 233 4381

CODE 18-77

SECRET