falls no further and that the MSP is restored soon,
and in any case not later than the end of next month,
We recognise that banking circles and the unofficials
may be concerned about this aspect of the working of
the Agreement, and would suggest that if any
explanation is necessary you should base yourself
on the text of the Agreement between us.
3. On a broader, but clearly related issue, we
have noted that, for example, Malaysia and Singapore
have recently unpegged their currencies from the
dollar when dollar inflows became troublesome.
According to Reuter, the Ren Min Bi has been revalued
by 5 per cent against the Hong Kong Dollar.
occurs to us that the Hong Kong dollar may be
It
, undervalued in relation to a range
of other currencies, with consequential effects on
import prices.
1
2
NIQUTH SML NI MELUNM 29 OL DNISLON