SECRET
PA
REGISTRY
Action T
ния
18/10.
Private Secretary
(69)
624
Un 789
FROM: R D CLIFT, HKD DATE: 12 October 1983
cc: Mr Giffard
Mr Donald
HONG KONG: PROPOSED FINANCIAL MEASURES
1. My minute of today. The Governor has told me that whatever the Secretary of State's decision on the introduction of the Certificate of Indebtedness scheme, he would be grateful to have
approval for the proposal that HK$250 million should be transferred from the Exchange Fund to the general revenue account. The Governor may decide that it would in any case be sensible to go ahead with the abolition of the withholding tax on interest on Hong Kong dollar deposits, which EXCO would not be likely to oppose. The transfer would be needed to compensate for loss of revenue from the tax.
2.
If the Secretary of State agrees with this proposal, I suggest that a paragraph be added to the draft telegram already circulated as follows:
Included
in telegram
I can in any case given contingent approval for the transfer of HK$250 million from the Exchange Fund to the general revenue account in case you decide to go ahead with the abolition of the withholding tax on interest on Hong Kong dollar deposits.
11
This action is uncontroversial and entirely within the Secretary of State's authority. I do not think it would be necessary to consult No 10 or other departments about it.
12 October 1983
SECRET
$ Zip
R D Clift
Hong Kong Department
No comments yet.
Private notes are available after approval.