DRAFT
PRIME MINISTER'S VISIT TO HONG KONG STERLING
Line to take To be confirmed
We are glad that a satisfactory arrangement has been
worked out to allow Hong Kong to participate in the
present six month guarantee.
w/cfo
2. We have taken no decisions yet about possible arrange-
ments for after March. We are consulting Hong Kong and
other sterling holders.
Background
sterling.
3. Hong Kong is one of the largest official holders of
In the summer of 1973, their total sterling was
of the order of £800 million, but since then the commer-
cial banks have diversified. Hong Kong's present holdings
of sterling are about £350 million.
4. Like other sterling holders, Hong Kong received at
the beginning of September the Chancellor of the Exchequer's
offer unilaterally to extend the guarantee for six months.
In order to allow Hong Kong to participate, given that the