GRS 200
SECRET
.HICK
TOP COPY
100/3
RECEIVED IN REGISTRY
FA
2017 PA17
1 1 JUL 1984
팽이
DESK OFFICER
PA
on Tex
SECRET
DE DIP
FM HONG KONG 100855Z JUL 84
TO IMMEDIATE FCO
TELEGRAM NUMBER 1884 OF 10 JULY
FOLLOWING STRICTLY PERSONAL FOR CLIFT FROM BLYE.
YOUR TELNO 1872: HONG KONG DOLLAR.
13
IN PARA 3 OF YOUR TUR YOU ASK FOR A GENERAL INDICATION OF THE EXTENT OF OUR INTERVENTION. ACTUAL SALES OF US DOLLARS HAVE BEEN RELATIVELY MODEST, BUT A SUBSTANTIAL AMOUNT OF HONG KONG DOLLARS HAS BEEN BORROWED BY THE EXCHANGE FUND FROM THE MONEY MARKET AND KEPT OFF THE MARKET. THESE BORROWINGS HAVE HELPED TO KEEP HIBOR INTEREST RATES HIGH. THE OVERNIGHT RATE AT LUNCHTIME WAS OVER 37 PERCENT. AT THE SAME TIME THE HK/USD RATE WAS 7.8320-60.
SOME OF THE DEMAND FOR US DOLLARS TODAY IS SAID BY BANKERS TO BE DUE TO GOLD TRANSACTIONS RATHER THAN FEARS ABOUT A DECLINE IN THE EXCHANGE VALUE OF THE HONG KONG DOLLAR.
BRAY
MINIMAL
HD HKD
ECONOMIC ADVISER (TIL THE SETT)
(MR HALLETT)
SECRET
Se
18
157
Page 45Page 46
No comments yet.
Private notes are available after approval.