TNAG-2814-FCO40-4060-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 33

JAN 28 '93 11:05 LKDEL

ECO KI

IVE 26 JAN 93 13:19

GOVERMENT HOUSE HONG KONG.

TUS 26 JAN 93 89:86

CONFIDENTIAL

PG.88

PG.65

P.5/13

and

the Hong Kong dollar will continue to be a freely convertible currency, It will bave full autonoay in muezzini relations and HK will remain

ita

External

a separate custome territory.

(B)

Economio growen bas gained

:

underpinned by strong private demand and increases in

exporta and

and re-esports. GDP growth is expected to

reach tha

official

prospecta for 1993 remain favourable

for 1992 and

(C)

Chine'a c

continoed ommitment

the

strengthening

of

HX**

southam Chine

to economic reform and

economic

links with

enhanced HX's role in providing

essential financial and trade-related

services to

China. With the expansion of productive capacity in southern China, there have been incressing outward. processing activities associated with the transfer of labour-intensive masifacturing activities to China,

Monetary and exchange rate policies

5.

(A)

HK

for

Authorities welc

continued

the fund staff's supporE

mitment to the linkad exchange

rata

system

which werYER

***

cornerstone

financial stability and confidence in HK.

HUTI BILL