TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 10

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Reference

Conclusion

12. While agreeing with the critique of the weak points of the link, the mechanism is not obviously malfunctioning. Indeed, it performs much as we have predicted. HKG have a lot to lose by a change, which must be balanced against the gains possible through some fine tuning of the arrangement. In such a calculation, the status quo probably comes out on top.

1 December 1988

نهه

M Wright

Economic Advisers WH426D

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CONFIDENTIAL