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submission
1. I have discussed this Mission with Sir Duncan Watson; it has been held up because of subsequent developments in the financial field.
2. It now seems that a decision about the Sterling Agreements will not be known before the end of August or beginning of September. It may therefore not prove to be worth asking the Governor to break his leave and come down before 11 September; but this can be decided nearer the time. Meanwhile we should perhaps still warn him, in case the earlier talks do in fact prove to be desirable. I have suggested some minor amendments to the draft telegram accordingly.
3. The Chancellor may be sending out a general message on the Sterling Agreements before our telegram issues. It will probably say little of substance, but the first paragraph of our telegram may need editing in the light of it.
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4. Hong Kong telegram number 726 has just arrived. The Treasury have taken exception to its tone, but I attended a Meeting this morning with them and with the Bank at which FCO Representatives, including Mr. Holland, Miss Pestell and I attempted to soothe them down. will be drafting a reply, which may have to be submitted to the Chance and on which we shall have an opportunity to comment. have pencilled-in a passing reference to this telegram in the present draft; we think we need do no more about it in this context.
27 July 1970
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R B Crowson
Hong Kong and Indian Ocean Department