TNAG-1391-FCO40-1863-Future-of-Hong-Kong-briefing-for-meetings-and-visits-1985 — Page 114

CONFIDENTIAL

HONG F G ECONOMY SINCE THE AGREEMENT

The Hong Kong economy is now expanding with renewed confidence. ie Hong Kong Index stood at 989.19 points on 1 October 1984, just ter the initialling of the Agreement on the future. On 20 May

;.

985 it stood at 1638.47. The linking of the Hong Kong dollar to ie US dollar in October 1983 has stabilised the currency. The Hong

ong dollar on 20 May stood almost three cents higher against the ›llar than it had six months before. Like the UK dollar it is very

rong against other currencies.

g Kong Department

May 1985

CONFIDENTIAL