་་
CONFIDENTIAL
THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT
PMV (HK) (74)3
14 December 1973
PRIME MINISTER'S VISIT TO HONG KONG
12th-14th JANUARY, 1974
STERLING
Line to take
Brief by II M Treasury
COFY NO
36
We are glad that a satisfactory arrangement has been worked out
to allow Hong Kong to participate in the present six-month
guarantee.
as of the UK.
2.
This is plainly in the interest of Hong Kong as well
We have taken no decisions yet about possible arrangements
for the period after March. We are consulting Hong Kong and
other sterling holders on this and aim to indicate our conclusions
in good time before expiry of the present arrangement.
Background
3. Hong Kong is one of the largest official holders of sterling.
In the summer of 1973, their total sterling was of the order of
£800 million, but since then the commercial banks have diversified.
Hong Kong's present holdings of sterling are about £350 million.
4-m
In common with other sterling holders, Hong Kong received at
(CONFIDENTIAL)