UnPo 190

FLASH

CYPHER/CAT A

FM HONG KONG 0304002

SECRET

Jee

68

Pa

SECRET

ZORWELL/

TO FLASH F C O TELNO 857 OF 3RD AUGUST, 1973.

YOUR TELEGRAM NUMBER 755.

STERLING GUARANTEE AGREEMENTS.

REGRVED IN REGISTRÝ No.C1

- 3AUG 13

HUCKS),

5

WE HAVE NO WISH WHATEVER TO BE UNHELPFUL AS OUR PATIENCE OVER THE PAST YEAR HAS SURELY DEMONSTRATED. BUT WE JUST CANNOT PROCEED ON THE BASIS SUGGESTED IN PARAGRAPH 1 OF THIS TELEGRAM, WINCH HAS CROSSED WITH MY PERSONAL TELEGRAM 854 TO THE SECRETARY OF STATE. I MAKE THIS POINT AGAINST THE KNOWLEDGE THAT OTHER COUNTRIES WITH STERLING ACREEMENTS HAVE EITHER ABROGATED THEM OR HAVE BEEN SELLING FORWARD RECENTLY (AND THESE COUNTRIES HAVE MUCH LOWER M.S.P.'S AS WELL AS SMALLER HOLDINGS THAN HONG KONG).

2.

NEITHER YOUR TELEGRAM UNDER REFERENCE, NOR ITS PREDECESSORS SEEM TO SHOW EITHER A FULL UNDERSTANDING OF OUR POSITION, OR AN APPRECIATION OF THE URGENCY OF THE FINANCIAL AND POLITICAL PROBLEMS FACING US. I THEREFORE PROPOSE THAT HADDON-CAVE SHOULD TRAVEL TO.... LONDON AS SOON AS POSSIBLE TO SEE THE CHANCELLOR WITH ME, IA AN APPOINTMENT CAN BE ARRANGED, OR TO HOLD DISCUSSIONS AT AS HIGH A LEVEL AS POSSIBLE IN THE TREASURY. GRATEFUL FOR REPLY TODAY INDICATING WHAT DAY NEXT WEEK WOULD BE CONVENIENT TO SEE HADDON- CAVE.

MACLEHOSE

REF

(63

ORWELL DISTRIBUTION ~~ FRD

HK100

PS/MR ROYLE

REF.

}

Į

68

SE Ċ RE T

+

Share This Page