NOTHING TO BE WRITTEN IN THIS MARGIN
Dd. 32855 Ed (4200)
5. I am disappointed that you should consider
H.M.G's. offer to back, as to 50%, a Hong Kong
Government guarantee as having lapsed.
It
seems to me that inasmuch as there may be
circumstances in the present Hong Kong situation
requiring the Treasury and E.C.G.D. to press
for a Hong Kong Government guarantee of the loan
there would still be a case for a public gesture
by H.M.G. in support of the Hong Kong Government
with a view to bolstering confidence in the
Colony's future.
pursuing this now, since in my view it is very
doubtful that the Hong Kong Government would now
agree to give a guarantee on any terms, if such
a guarantee should still be required. I would
But I see little purpose in
add that it would be an act of folly to tell
Hong Kong that H.M.G's. offer is withdrawn unless
it becomes absolutely necessary to do so. I
hope we never have to do so, but to do it now
would unnecessarily exacerbate relations already
strained in the aftermath of devaluation.
6.
I am writing separately in reply to
Cotterill's letter of 23 February asking for
views on Hong Kong as a ten year forward risk.
7. I am sending copies of this letter to
Cotterill (E.C.G.D.) and Gowers (Board of Trade).
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(w.5 barker)