CONFIDENTIAL
CYPHER/CAT A AND BY
BAG
IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 329
CONFIDENTIAL
TO HONG KONG
16 MAY 1969
(MF)
ADDRESSED TO HONG KONG TELEGRAM NUMBER 329 OF 16 MAY
REPEATED FOR INFORMATION SAVING TO KUALA LUMPUR (FOR FOGARTY) YOUR TELEGRAM NO. 396: EXCHANGE FUND AND STERLING GUARANTEES.
WE NOTE YOUR REQUEST TO RAISE THE LIMIT OF BORROWING PERMITTED BY
THE EXCHANGE FUND FROM HK DOLLARS 3,000м TO HK DOLLARS 3,500M OR HK DOLLARS 4,000M., AND WILL GIVE THIS VERY URGENT CONSIDERATION. 2. MY IMMEDIATELY FOLLOWING TELEGRAM CONTAINS THE TEXT OF O'BRIEN'S REPLY OF 13 MAY (NOW ON ITS WAY BY AIR BAG) TO COWPERTHWAITE'S LETTER OF 1 MARCH, COMMENTING ON THE ARRANGEMENTS OFFERED TO THE
COMMERCIAL BANKS. YOUR URGENT COMMENTS WOULD HELP OUR CONSIDERATION.
3. WE WILL SEND EARLY NEXT WEEK A LIST OF POINTS ON WHICH WE SHOULD
BE GRATEFUL FOR FURTHER FACTUAL INFORMATION BEFORE COMING TO A FINAL
VIEW: AND IF NECESSARY FOGARTY WOULD BE AVAILABLE FOR DISCUSSION
IN HONG KONG IN THE FOLLOWING WEEK.
4. THERE ARE STILL DIFFICULTIES IN THE WAY OF PROVIDING FOR AMENDMENT
•
OF THE EXCHANGE FUND BORROWING POWERS BY RESOLUTION OF LEGCO.
5. IN THE MEANTIME, WE REGRET THAT WE CANNOT REPEAT CANNOT AGREE THAT YOU SHOULD EXCEED THE EXISTING LIMITS ADMINISTRATIVELY.
STEWART
FILES
F.P.A.D.
H.K. DEPT.
AAAAA
CONFIDENTIAL
RECON
аккоро
LAST
REF
$EF.
(16