SECRET
get out of sterling altogether, this will give them problems.
They will take it amiss if we now tell them too brusquely
that they must maintain their MSP in accordance with their
and thous acquire more
Agreement.
(amò
unwanted sterling) mu.
4. In this situation we have told the Treasury and the Bank
that we must reply to Hong Kong as helpfully as we can in
both substance and tone. The attached draft telegram has
accordingly been agreed by the Treasury and the Bank of England.
Mr Holland and FRD also agree. I understand the PUS has ruled
that the Secretary of State should be consulted.
telegram to Hong Kong is submitted accordingly.
The draft
10 July 1973
Copy to: PS Mr Royle PS to PUS Mr Holland
Mr Marshall
ACSES
A C Stuart
Hong Kong & Indian Ocean Department
The PUS was very concerned that HK. shd not be hammered by HMG
unnecessarily.
Miss Pestell/Mr Lewty FRD
The compromite
-promise which
now been worked out
may
L
quite adequate for the Governor. In any
(more than half a
he is
the prosition. and reco
sespatched.
SECRET
given
I think this is adequate
Hat the Telego-
Kunhilfen
be
77