4

SECRET

with 34

A

STERLING AGREEMENTS

1.

The Governor discussed this problem with Mr Nott, Minister

of State at the Treasury, on 9 August. He subsequently dined

with Mr Royle.

2.

The Chancellor's promised message to all signatories issued

on 6 September. The Governor has been informed of its contents

by telephone.

3. Sir M MacLehose has asked for comments from Hong Kong in time for his London meetings. Mr Royle will wish to listen to

his reactions, but discussion of the substance of the Chancellor's

message will no doubt take place between the Governor and the Treasury, (Mrs Hedley-Miller in the first instance).

4.

Before the meeting with the Governor the Treasury hope to let us have a copy of the Hong Kong declaration which may then be

handed to him.

Hong Kong & Indian Ocean Department

7 September 1973

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