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HONG KONG/US DOLLAR LINK
CONTRIBUTION TO STABILITY
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The Hong Kong/US dollar link fosters stability and confidence by creating predictable financial framework.
Any change in link would be a matter for the Hong Kong
Government.
They have expressed conviction that a change would cause uncertainty and speculation in years ahead, which could seriously
harm Hong Kong.
INTENTIONS OF HONG KONG GOVERNMENT
Hong Kong Government have repeatedly stated intention to
maintain link at the current level.
MEASURES TO DISCOURAGE SPECULATION
Consideration of a "specified rate" by the Hong Kong Association
of Banks designed to deter currency speculation not a government measure but clearly in line with government's policy of
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maintaining link at the current level.
RISK OF PROTECTIONIST MEASURES AGAINST HONG KONG
Hong Kong's overall trade remains more or less in balance. No question of link being used to create unfair trade
advantages.
Hong Kong operates an open trade regime fully in accordance with the General Agreement on Tariffs and Trade.
Any protectionist measures against Hong Kong in retaliation against maintenance of the present dollar link would therefore be
unjustified.
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