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BANK OF ENGLAND Threadneedle Street
London EC2R 8AH
23 January 1992
Maits 101/1
N J Cox Esq
Hong Kong Department
Foreign & Commonwealth Office
Whitehall
London
SW1A 2AH
(17)
Dear Nigel,
HONG KONG: CONFIDENTIAL FINANCIAL DIALOGUE
a
1 In your letter of 16 January to Paul McIntyre you asked for any
comments we might have on the items proposed for discussion in the
next round of talks to take place next month.
2 We have nothing to offer on the first two items: the design of
new (neutral) HKSARG banknotes and their introduction before 1997
and the replacement of the 10-dollar note with a coin; and the quarterly up-date on the monetary situation.
On the third item, the proposed Liquidity Adjustment Facility,
we have some reservations. This is one aspect of Hong Kong's monetary arrangements which Tony Latter and Oliver Page will be considering as part of their review at the request of the Hong Kong
government. The outcome of that review may well be to confirm that the facility, as currently set out, is what is needed, but it seems premature for the Hong Kong government to be discussing this in any details with the Chinese in mid-February. The Latter-Page report
should be submitted by the end of February, so it would seem more
sensible if this item could be raised more in the form of an
indication of preliminary thinking. If and when it is decided to implement the facility no doubt Hong Kong could then give the
Chinese advance notice in writing.
No comments yet.
Private notes are available after approval.