TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 88

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CONFIDENTIAL

2

time, the General Committee of the Stock Exchange of Hong

Kong decided to suspend trading for 4 days. The

officially quoted reason was to allow all outstanding

transactions to be settled in accordance with trading

rules. Over the preceeding months, a considerable backlog

had built up because of the very high level of turnover in

the market. Because of the Stock Exchange's decision, the

Hong Kong Futures Exchange also suspended trading.

Assessment

3.

In late November, after the dust had settled,

SASI asked all overseas offices for a comprehensive

assessment of how Hong Kong's image and reputation had

been affected on a long term basis by the events in

October. The offices were asked to cover at least the 4.

following points :

(a) the extent and tone of print and electronic media

coverage in their area of responsibility both to

the events themselves and the Government's

response to them;

(b)

the underlying perception of Hong Kong as an

international financial centre in the light of

those events in the mind of the general public,

and in particular leaders in commerce, industry

and political circles;

CONFIDENTIAL