GR 390.
FRICRITY
IR CAT A
FM F C O 271705Z
PESTRICTED
RESTRICTED
4/6/11 F (60)
(IG)
TO PRIORITY CERTAIN POSTS TELIO GUIDANCE 103 OF 27 JUNE. 1973.
EEC COMMISSION REPORT ON STERLING DALANCES.
1. AS YOU KNOW, THE EEC COMMISSION WAS INSTRUCTED BY THE COUNCIL OF MINISTERS ON 11 MARCH TO UNDERTAKE THE STUDY OF THE INDIVIDUAL. PROBLEMS POSED BY THE EXISTENCE OF STERLING BALANCES AND THE METHODS BY WHICH THE COMMUNITY COULD HELP TO ALLEVIATE THEM, THE CHANCELLOR REFERRED TO THIS IN HIS MONTHLY MESSAGE FOR FEBRUARY (MY TELS MOS 360 TO CANBERRA, 198 TO ANNAN AND 141 TO VALLETTA, OF 23 HARCI (KOT TO ALL)). THE COMMISSION'S REPORT ON THE CONDITIONS FOR ASSOCIATIO OF THE UK, IRELAND AND ITALY WITH THE JOINT FLOAT OF EEC CURRENCIES, DUE BY 36 JUME, WILL CONTAIN A SECTION ON THE STERLING BALANCES, AND WE MUST EXPECT ITS CONTENTS TO BECOME GENERALLY KNOWN ABOUT TA TIME. (SEPARATE REPORTS WILL ALSO BE MADE ON THE CONDITIONS FOR THE PROGRESSI VE POOLING ON EEC RESERVES AND THE ADJUSTMENT OF THE ECC) S
SHORT TERM SUPPORT FACILITY),
2. IT WAS COMMISSIONED IN THE CONTEXT OF DISCUSSIONS CARRIED OUT DURING A PERIOD OF GREAT MONETARY INSTABILITY, DURING WHICH 6 EEC COUNTRIES (JOINED BY NORWAY AND SVEDEN) DECIDED TO MAINTAR A JOEN FLOAT OF THEIR CURRENCIES AGAINST THE US DOLLAR, FOR DIFFERCUT REASONS, BRITAIN, IRELAND AND ITALY WERE UNABLE TO PARTICIPATE 19 THE JOINT FLOAT AT THE TIME, ALTHOUGH THEY EXPRESSED THE INTENTIO TO DO SO AS SOON AS CIRCUMSTANCES PERMITTED. THERE WAS CEMERAL
UNDERSTANDING OF THEIR POSITION,
INSTRUCTIONS FOR USE.
3. THE COMMISSION'S REPORT HAS BEEN THEIR OWN WORK, WE DO NOT EXPECT IT TO BE CONTROVERSIAL NOR TO SUGGEST A MAGIC SOLUTION TO THESE VERY COMPLEX PROBLEMS AFTER WHAT MUST MECESSARILY HAVE DEEN A SHORT AND LIMITED STUDY OF THEM. WE WOULD NOT WISH YOU TO TAKE THE HITIATIVE IN DRAWING ATTENTION TO THE REPORT, BUT IT ASKED YOU SHOULD SAY THAT IT IS NATURAL THAT THE COMMISSIOJ SROULD HAVE GIVEN SOME ATTENTION TO THE STERLING BALANCES IN THE SERAS OF REPORTS PREPARED FOR 30 JUNE, WICH WILL BE THE SUBJECT OF STUDY OVER THE COMING MONTHS.
RESTRICTED
14. MORE
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