ARNEA B
RECEIVED IN
THE CHANCELLOR'S MESSAGE OF 20 OCTOBER 1972 TO THE FINANCE MINISTERS OF STERLING AGREEMENT COUNTRIES L 1975
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!
At our recent meeting of Commonwealth Finance Ministers in
London, I said that I would write to you about the sterling
agreements as soon as I conveniently could after my return
from Washington.
2. I have given a good deal of thought to the reports I received on the consultations which my officials and the Bank of England began in July, and also to the comments which many of my Commonwealth colleagues and their advisers made
in London at the time of our recent meetings.
3. It seemed to me in July that we needed to consult about: the possible implementation of the agreement while sterling is floating, and accordingly UK representatives made some suggestions to you about this. But as things have turned out this contingency has not arisen, and it may be sufficient for the time being to leave the present arrangements as they are and to be prepared to consult together quickly should
the need arise.
4. In broaching with you in July the question of possible renewed sterling agreements to cover a period after September 1973, I was taking what seemed to be a convenient opportunity, given the other reasons for holding consultations at that
time.
In itself, of course, renewal is not urgent as the
agreements do not expire until September next year.
I remain
SECRET