CONFIDENTIAL

Mr Wilford

15

FINANCIAL ADVICE TO HONG KONG

2.

Your minute to 24 August, paragraph 2.

Could I mention that in the event that Mr Royle is inclined to discuss with the Governor any alternative sources of advice, then it will I think be necessary to take Treasury and Bank of England views? They are aware of, and approve of, Mr Royle's suggestion that the advice should come from a team of UK officials. They have not seen the Governor's reply in which he floats the idea of a merchant banker; nor are they aware of my own idea that perhaps the IMF could be induced to take this on.

3. For all I know, they might have cogent reasons for resisting either or both of these ideas; and they would in any case wish to know what line Mr Royle intends to take in discussion with the Governor.

Incidentally, since Sir D Rickett works for a sister but in some ways rival institution, he may not be well placed to help. But I don't doubt that we would inpractice be able to exercise some influence over the composition of any IMF team, and, perhaps most important, over its terms of reference.

D G Holland

24 August 1973

c.c.

Sir D Watson

Mr Marshall (with copy of Mr Wilford's minute)

Mr Cambridge

#

M: Sturrt

##

11

CONFIDENTIAL

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16

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