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and which is rather reminiscent of the device which Mr.
Harold Lever has proposed to Investment Overseas Services. The idea would be that Hong Kong would set aside under
independent trustees in London a sufficient part of its reserves to reimburse investors in a Kai Tak loan if Hong Kong failed to meet its obligations. Alternatively (but
I think the Treasury would probably jib at this on grounds of principle and precedent) the trustees' duty might be to reimburse HM Government if they guaranteed a City of London loan to Hong Kong and then had to make their guarantee good
at some date in the future. If the Treasury make difficulties
over what Mr. Laird has suggested Mr. Royle might say in
Hong Kong, you might possibly be able to make some progress with them by suggesting that this would be one method worth investigation for meeting any expectations which Mr. koyle's suggested remarks might raise in Hong Kong though I would still expect the Treasury to ask him not to refer to the public expenditure exercise in this context.
J.R.a. Bomonday
J.R.A. Bottomley
1 October, 1970
Copies to Sir L. Monson (OR)
Mr. Gallagher
Mr. Laird
Mr. Hanbury Tenison
Mr. Wade Gery
Mr.
Statham
Mr. Britten
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