TNAG-1331-FCO40-1758-Future-of-Hong-Kong-test-of-the-acceptability-of-the-Joint-D-1984 — Page 324

THE TRANSFER OF ADVANCED TECHNOLOGY, WHICH IS AT

PRESENT RESTRICTED TO NON-COMMUNIST COUNTRIES,

SHOULD NOT BE PREVENTED AS A RESULT OF HONG

KONG'S NEW STATUS: *

PROPER PROCEDURES SHOULD BE ESTABLISHED FOR

ARBITRATION IN ANY COMMERCIAL DISPUTE WHICH MIGHT

ARISE BETWEEN HONG KONG BASED COMPANIES AND

ORGANIZATIONS IN CHINA: AND

THE FISHING RIGHTS OF HONG KONG FISHERMEN SHOULD

NOT BE OVERLOOKED.

SECTION VII THE MONETARY SYSTEM

4.25

THE PROVISIONS FOR THE PRESERVATION OF THE

EXISTING FINANCIAL AND MONETARY SYSTEM IN HONG KONG WERE

WELL RECEIVED IN BANKING CIRCLES. THE ACCORD WAS

CONSIDERED TO HAVE HELPED TO CLEAR UNCERTAINTIES AND WOULD

BOOST CONFIDENCE IN HONG KONG'S FUTURE AS A FINANCIAL

CENTRE. THE COMMERCIAL SECTOR WAS ALSO CONFIDENT THAT HONG

KONG WOULD CONTINUE TO ATTRACT FOREIGN INVESTMENT AND SERVE

AS A STEPPING-STONE FOR THOSE WHO WISH TO TRADE WITH

CHINA.

4.26

COMMENTS HAVE CENTRED ON :

MAINTENANCE OF THE EXISTING MONETARY SYSTEM

THE HONG KONG CURRENCIES

4.27

THE IMPORTANCE OF A STABLE AND CREDIBLE MONETARY

SYSTEM WAS RECOGNISED. IT HAS BEEN POINTED OUT THAT THE

MANAGEMENT AND CONTROL OF THE EXCHANGE FUND MUST CONTINUE

TO MAINTAIN A MIXED PORTFOLIO OF CURRENCIES AND INSTRUMENTS

FREELY DISPOSABLE IN LEADING FINANCIAL MARKETS OF THE

WORLD.

4.28 SUPPORT WAS EXPRESSED FOR THE PROVISION THAT THE

SAR SHALL ISSUE HONG KONG CURRENCY. AS THE DRAFT AGREEMENT

DID NOT SPECIFY WHICH BANK WOULD BE AUTHORIZED TO ISSUE

HONG KONG BANK NOTES, IT HAS BEEN SUGGESTED THAT THIS BE

CLARIFIED. A FEW INDIVIDUALS WERE CONCERNED THAT THE HK

DOLLAR SHOULD BE THE SOLE LEGAL TENDER IN HONG KONG SAR

AFTER 1997, TO THE EXCLUSION OF THE CHINESE AND OTHER CURRENCIES AND THAT ITS VALUE SHOULD BE MAINTAINED.

4.29

ANOTHER POINT RAISED WAS THE ESTABLISHMENT OF A

CENTRAL BANK IN THE HK SAP.

SECTION VIEL SHIPPING

SECRET-34-

14.30

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