TNAG-1325-FCO40-1737-Future-of-Hong-Kong-Parliamentary-debates-1984 — Page 56

CONFIDENTIAL

53. PROTECTION OF PROPERTY RIGHTS?

Agreement makes clear that rights concerning the ownership of property will continue to be protected by law, and that proper

compensation will be paid in the event of any lawful expropriation.

54. WILL HONG KONG BE ABLE TO IMPORT HIGH TECHNOLOGY GOOD ON COCOM

LIST?

This will be a matter for Cocom Governments to decide. The

agreement provides for considerable autonomy for the SAR in the field of foreign trade.

SECTION VII: MONETARY SYSTEM

55. FREE EXCHANGE OF FOREIGN CURRENCY TO CONTINUE?

Yes.

Agreement provides that no exchange control policy will be

applied in the SAR.

56. WILL CURRENCY BE ISSUED BY THE TWO BANKS AS NOW?

Authority to continue to issue Hong Kong currency will be vested in

the Government of the SAR which may authorise designated banks to issue or to continue to issue Hong Kong currency under statutory authority.

57. HOW WILL SAR SATISFY ITSELF THAT ISSUE OF CURRENCY IS SOUNDLY

BASED AND "CONSISTENT WITH THE OBJECT OF MAINTAINING THE STABILITY

OF THE CURRENCY"?

This is for the SAR to decide. The current system involved a link

between the issuing of bank notes and the US dollar. Under the

autonomy envisaged for the SAR, its Government would have the

freedom to operate a system on these lines.

58. WILL HONG KONG RETAIN ITS OWN CURRENCY?

Yes.

The Hong Kong dollar, as

as the legal tender of Hong Kong, will

continue to circulate freely and remain fully convertible.

SECTION VIII: SHIPPING

CONFIDENTIAL