TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 89

(c)

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an assessment of the long term damage done to

Hong Kong's image; and

(d) advice on possible additional ways of repairing

that damage.

Scope of Review

4.

The limited scope of the inquiry should be

emphasised. Reports could only be requested from those

places where the Hong Kong Government maintains overseas

offices (i.e. London, Geneva, Brussels, Washington, New

York and San Francisco). There is therefore nothing from

Japan which is the world's third largest financial centre

and which is significant because it is in a similar time

zone to Hong Kong, nor is there any report from

Australia.

Reaction there to Hong Kong's stock exchange

closure is reported to have been particularly adverse,

again because of the similarity of time, and unit trusts

with large sale orders were forced to dump shares in

Sydney to raise cash because they could not sell in Hong

Kong. An example of coverage is the Sydney Morning

Herald's article of 29 December 1987.

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