CONFIDENTIAL
PRIORITY
CYPHER/CAT A
GPS 300
FM HONG KONG 040145Z
CONFIDENTIAL
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LART
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REF.
TO PRIORITY FCO TELNO 866 OF 4 AUGUST. 1973.
YOUR TELEGRAM 752: FINANCE.
FOLLOWING PERSONAL FOR MR ROYLE.
TOP COP
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MANY THANKS. AS YOU HAVE SEEN FROM THE TELEGRAMS I AM AT PRESENT PREOCCUPIED WITH THE DANGERS THAT ARE RUSHING TOWARDS US THROUGH ABSENCE OF AN INDICATION WHETHER ARRANGEMENTS ARE CR ARE NOT TO BE MADE BY HNG ABOUT OUR HUGE OPEN STERLING POSITION ON 25 SEPTEMBER, LET ALONE WHAT FORM SUCH ARRANGEMENTS MIGHT TAKE. WE HOPE TO MAKE PROGRESS ON THURSDAY NEXT WEEK IN LONDON. INCIDENTALLY WOULD THERE BE ANY CHANCE OF SEEING YOU?.
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2. I WOULD GLADLY DISCUSS THE PROVISION OF FURTHER FINANCIAL ADVICE WITH YOU. BUT OUR PRESENT PROBLEMS CERTAINLY DO NOT STEM FROM LACK OF EXPERTISE OR MISHANDLING HERE AND IF, AS SEEMS LIKELY, WE TAKE A FURTHER LOSS BY EXCHANGE THIS AUTUMN I WOULD NOT WISH TO IMPLY THE LOSS WAS THE RESULT OF ERROR HERE, AS WOULD BE ASSUMED IF I ACCEPTED A FINANCIAL TEAM FROM THE UK. TO DO SO COULD BE TAKEN AS A VOTE OF NO CONFIDENCE IN HADDON-CAVE AND I KNOW THAT IS NOT
WHAT YOU INTENDED TO IMPLY.
3. IF WE NEED ADDITIONAL HELP IT IS THROUGH SECONDEES (NOT VISITORS) OF HIGHER CALIBRE THAN THE BANK OF ENGLAND HAVE RECENTLY PROVIDED. I DOUBT IF THE FCO HAS ANYONE BETTER IN THIS FIELD THAN WE HAVE ALREADY. BUT I HAVE IT IN MIND TO EXPLORE THE POSSIBILITY OF GETTING SOMEONE FROM A MERCHANT BANK YOU MAY REMEMBER THE SUCCESSFUL EXPERIMENT WHEREBY LAZARDS SECONDED ONE OF THEIR BRIGHTER 40-YEAR OLDS AS FINANCIAL ADVISER TO OUR EMBASSY AT BONN. PLEASE DO NOT TAKE ANY ACTION VIS-A-VIS THE BANK OR ANYONE ELSE FOR THE TIME BEING, BUT I SHOULD LIKE YOU TO KNOW THE WAY I SEE THE PROBLEM IN ADVANCE OF DISCUSSION IN SEPTEMBER, OR WHENEVER YOU LIKE,
MACLEHOSE
FILES
IID HIKIOD
HD FRD
PS/MR ROYLE
SIR E NORRIS
CONFIDENTIAL