EAST ASIA BRIEF (DELETED) FOR 24 OCTOBER

Created: 10/25/1983

OCR scan of the original document, errors are possible

1

ONGK: IMPROVEO ATMOSPHERE FOR TALKS

imMOSLEMS IN HONG KONG HAVE LED CHINA ANO THE

FUTUREBltt FLEXI9IUTY ,NT4USHE COLONY'S

W0 0AYS 0f TaLKS IN BEIJING CN THURSDAY WTEME,lT DESCRIBING THE 0ISCUSSIONS AS "USEFUL CONSTRUCTIVE." THET HAVE AGREED TO MEET AGAIN NEXT MONTH.

ae^Mnr'lSlH 5SP25JS CiTE rHdTMINISTER THATCHER. ECENT LETTER TO PREMIER ZHAO. OROPPED LCNOON'S INSISTENCEORMAL BRITISH PRESENCE AFTER CHINA REGAINS SOVEREIGNTY ANO INSTEAD ASKEO ONLYUBSTANTIAL BRITISH ROLE. THE CHINESE HAVE

i

!

S^^OUENTLY TONED OOW THEIR MEDIA ATTACKs'on THE UK'S POSITION.//

//LAST HECK THE HONG KONG GOVERNMENT STABILISED THE LOCAL CURRENCY BY ABANDONING THE FREE-FlOATING EXCHANGE RATE IN FAVOR OFFIXED RATE OFONG KONG OOLLARS PER US DOLLAR. THE COLONY'S TWO NOTE-ISSUING BANKS NOV ARE REOUIREO TO BACK HONG KONG DOLLARS THEY ISSUE BY DEPOSITING AN EQUIVALENT AMOUNT Of US DOLLARS VITH THE GOVERNMENT. THE BRITISH AUTHORITIES ALSO LIFTED THEPERCENT WITHHOLDING TAX ON INTEREST EARNEO ON HONG KONG DOLLAR DEPOSITS TO ENCOURAGE INCREASEO HOLDINGS OF LOCAL

JHHHOTH SIDES ARE ANXIOUS TO PREVENTECURRENCE Of HE HtAHVtxKiZ IN HONG KONG THAT FOLLOWED THE TALKS LAST MONTH WHEN

The LOCAL CURRENCY'S

//THE IMPROVED ATMOSPHERE MAY BE SHORT LIVED. THEiiiESTABILIZE TEMPORALLY FUTW

G 0V" TOUNIKOL WHEN THEEASE EXPIRES IN 1QQ? THF cuiuc'

^nu^RESSlNG FOR AN EARLY BRITISH CMCESSIoSGnJ^'

Original document.

Comment about this article or add new information about this topic:

CAPTCHA