IF 9/5/18/1
Foreign and Commonwealth Office
London S.W.1
4/B/;
JUN 1975
25 June 1973
MF9/548/1
C Fogarty Esq
HI TREASURY
Great George Street
LONDON SW1
Don Christophu,
STERLING AGREEMENTS
1. It coma possible that the forthcoming report by the d Commission which refers to the Sterling Balonces will ablamali some interest in the press and so be brenght to the attention
There have indood "rom y of Sterling Agreement" countries. been one or two snippets in the papers about the future of the Agreements. It would therefore be useful if our posts could receive some guidance by 30 June, so that any press s eculation may be put in perspective. It is, as you know, sone tine pirce posts had guidance about here we stand either in relation t discussions in Europe or on our thinking on the future of the Agreements. I attach a draft telegram which, if you agree, suggest should be despatched before the end of the nonth.
1
If it had been possible for the Chancellor's message th post-September arrangements to have issued by the end of thi nonth, this would have avoided any impression of our having been put on the defensive should the Commission's report provoke ny
For this questions (or misunderstanding) from the holders. reason it seems the more important that posts should be given on indication of how to react if the contents of the Cormission': report becomes generally known, in case there is any agitabi a locally. It will be useful and reassuring to roin' "ests & they already know of the work being undertaken by the Commis and since we are not supposed to be aware of what the rearb teins until it is formally transmitted to the Council of Ni the line that we welcome the Commission's report as an cx76 of Cormunity interest in the problem and will study it caro? should give us an adequate breathing-space.
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3. We must, however, now face the fact that every week ges by increases the risk of rovoking dissatisfaction the sterling holders about cur tardiness in approaching then on the long-awaited 'consultations' on the future of the Agreements. At the moment we still seem to be some ray from Even after the decision "Tinisterial decision on our policy. boon taken, past experience shows that it would be unrealistic to count on the process of preparing a draft circular mesanje (and any variations which may be necessary for indivi¡ual coun- tries such as Hong Kong, and perhaps the Dependent Territories
This means that July generally) taking less than two weeks.
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