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holding about the
Athens CostChust of
sters as they thering an
would be even
without an agreement This should decrease their anxiety about the posit in after 25 September, 255
observed, however, that HMG had a strong interest in
Where
that agreement because it was the only hold on whether
no rechanga There was an Exchange
the banks kept their reserves. Control
Banke Sommittee in Hong Kong. Mr Holland said that
alradna
the banks had been allowed some diversification.
A
This
It might well be that they were already storse to the N would go come way towards meeting their anxiety about
having an open sterling pecition on 25 September.
Sir D Watson thought it would be useful to have an
early reaction from Hong Kong to the Unilatera
Declaration, but of course Mr Haddon Cave was
go th
present in Tokyo. Mr Stuart said he was not clear
how far the banks were covered by the new arrangements.
Mr Holland said they were covered in the same way as
the definition of official balances remained
before
unchanged.
do.
5. Sir M MacLehose said that if he saw Mrs Hedley-
Miller at the Treasury he would tell her that Hong
Kong's main requirement would be to seek a reduction
in MSP. Mr Royle asked Sir M MacLehose if, after
seeing the Treasury, he would do him a note on the
situation setting out what he would like the FCO to
We would assist with the Treasury if we could
but we could not hold out great hopes. Mr Holland
said it was important not to try to rush the Treasury.
It was also helpful to avoid publicity. If the
possibility of special arrangements for Hong Kong was
made public, other sterling holders might well seek
them too. Mr Marshall saw two separate exercises:
Mr Haddon-Cave should talk to the Chancellor in
about the longer term implications. Nairobi and Dar-es-Salaam
Balaam; eanwhile, if any
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