SALAHL (2)
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2.
Criticism of the link: risk of protectionist measures against
Hong Kong
We seek to put Hong Kong's case as robustly as we can to our friends
and partners and in international fora. The merits of the case are
clear. Hong Kong's overall trade remains more or less in balance. Hong Kong operates an open trade regime fully in accordance with the General Agreement on Tariffs and Trade. The Hong Kong/US dollar
link was introduced in 1983 following a period of severe exchange
rate instability. It has been maintained ever since while the US
dollar has both risen and fallen, providing clear evidence that the
link is not intended as an instrument of trade policy. Any
protectionist measures against Hong Kong in retaliation against
maintenance of the present dollar link would be patently unjustified. I believe that we are succeeding in getting this message across to the international community.
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