THE Sunday Morning Post of October 17 stated: ''It is claimed that the [dollar] peg was endorsed by such eminent people as Nobel Prize winner Milton Friedman. I have read everything I have been able to find that Dr Friedman has written . . . [He] does not subscribe to a permanent peg of a currency to the US dollar . . . '' as Leon Richardson wrote. In the South China Morning Post (October 19): ''Nobel Prize-winning US economist Milton Friedman says the fixed Hong Kong dollar-US dollar rate should continue. The monetarist guru said the fixed rate was 'not a peg' but 'a unified currency with the US'.'' JACK KEENAN Hong Kong Leon Richardson replies: I place my confidence that what I wrote was correct on the books and reports Dr Friedman made that won him the Nobel Prize, and the books written in the following two decades. His objection to any currency pegged to the US dollar is because that currency then falls under the control of the US Federal Reserve System.