TNAG-2749-FCO40-3964-Economic-situation-in-Hong-Kong-1993 — Page 42

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нив

HKB 090/1

1993 TOP COPY

Q DIST?

UNCLASSIFIED

FM HONG KONG

TO PRIORITY FCO

TELNO 1652

OF 210913Z OCTOBER 93

INFO PRIORITY PEKING, TREASURY, BANK OF ENGLAND

(49)

171602

MDLIAN 5062

ра ни есл

HONG KONG MONETARY AUTHORITY

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SEMINAR ON MONETARY MANAGEMENT ON 18-19 OCTOBER 93

1. EARLIER THIS WEEK, THE HONG KONG MONETARY AUTHORITY ORGANISED A ONE-AND-HALF DAY SEMINAR ON MONETARY MANAGEMENT. THIS COINCIDED WITH THE TENTH ANNIVERSARY OF THE LINKED EXCHANGE RATE SYSTEM. THE SEMINAR ATTRACTED A CAPACITY AUDIENCE OF WELL OVER 300 ECONOMISTS AND PROFESSIONALS FROM THE FINANCIAL SECTOR. THE SEMINAR WAS ADDRESSED BY LEADING EXPERTS FROM WORLDWIDE - NOBEL LAUREATE PROFESSOR MILTON FRIEDMAN, DEPUTY GOVERNOR CHEN YUAN FROM THE PEOPLE'S BANK OF CHINA, CHARLES GOODHART FROM THE LSE AND MEMBER OF OUR EXCHANGE FUND ADVISORY COMMITTEE (EFAC), DAVID PERETZ (UKDEL IMF/IBRD WASHINGTON), TONY NICOLLE (GM, STANDARD CHARTERED BANK AND EFAC MEMBER) AND A NUMBER OF ECONOMISTS INCLUDING PROFESSOR STEVEN CHEUNG AND JOHN GREENWOOD. JOSEPH YAM, CHIEF EXECUTIVE OF THE HKMA ALSO MADE A PRESENTATION.

2. IT WAS A SUCCESSFUL SEMINAR. THE QUALITY OF THE ADDRESSES AND SUBSEQUENT Q AND A WAS VERY HIGH. IT IS WORTH NOTING THAT ALL SPEAKERS GAVE CLEAR SUPPORT TO HONG KONG'S LINKED EXCHANGE RATE SYSTEM. APART FROM MILTON FRIEDMAN WHO ACCUSEED THE HKMA OF MEDDLING, THERE WAS CLEAR SUPPORT ON THE MONETARY REFORM MEASURES TAKEN IN HK MORE RECENTLY.

3. DEPUTY GOVERNOR CHEN YUAN GAVE A FAIRLY DETAILED PRESENTATION ON THE ECONOMIC SITUATION IN CHINA AND THE MONETARY REFORM MEASURES NOW UNDER DISCUSSION IN PEKING. WHAT HE SAID WAS SIMILAR IN CONTENT TO PEKING TELELETTER DATED 14 OCTOBER 93. HE ALSO MADE HELPFUL COMMENTS ON HONG KONG'S MONETARY SYSTEMS AND ON VERY GOOD RELATIONSHIP BETWEEN CHINA AND HK ON THE MONETARY AND BANKING FIELDS.

4. CHEN SAID THAT "IT IS VERY NORMAL FOR THE PEOPLE'S BANK OF CHINA AND THE HONG KONG MONETARY AUTHORITY TO HAVE EXCHANGE AND

COOPERATION AND TO HAVE FREQUENT DISCUSSIONS ON ISSUES OF MUTUAL INTEREST. WE HAVE LAID VERY SOLID FOUNDATION FOR COOPERATION. AND I

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