HONG KONG
COVERING NOTE DESPITCH
FROM SECRETARY OF STATE
SECRET
PA
Brief like
1. I have the honour to refer to the attached copy of the Declaration made at London on 11 September 1973 by the Government of the United Kingdom of Great Birtian and Northern Ireland in which the Government of the United Kingdom undertales to maintain the sterling value in terms of the United States dollar of the balances of Hong Kong eligible for guarantee under the Sterling Agreement.
2. Official sterling reserves held with banks or other depositarico in Hong Kong will be deemed not to be official sterling reserves for the purposes of this Declaration unless throughout the period that the provisions of the Declaration are in effect at least as much sterling as is deposited locally with each of thoa. banks or other depositaries on official account is held directly in the United Kingdom for their account by the United Kingdom correspondents or head offices of such local banks or other
depositaries. Evidence that such cover is held on
24 September 1973 and the last working day of March 1974 will is required from United Kingdom 'correspondents and head offices co instructions from local banks and other depositaries. Auditors' certificates will be required for the same dates for any eligible assets held physically with local banks or in transit from them to the United Kingdom.
3. Subject to the foregoing and to the provisions of the Decleration none of the provisions of any other agreements, arrangements or understandings, whether oral or written, made or reached between the Government of the United Kingdom and the Government of Hong Kong, or their respective agents, for the purposes of applying or interpreting the Sterling Agreement will be regarded by the Government of the United Kingdom as in any way affeciia.7 the applention or interpretation of the Te da mahdoll
4.
The original Declaration will be sent to you as soon as possible.