+

Mr Holland

21 ye

MF9/39311

1

HONG KONG STERLING AGREEMENT : DIVERSIFICATION

1

I have spoken with Douglas Stone and he has explained the situation as follows :-

The Bank of China would have an account with a Hong Kong Commercial Bank. It would write to this bank and ask for the account to be orodited with Sterling and debited with the equivalent amount of Hong Kong $.

The net result is that the commercial bank's Hong Kong ♬ liabilities fall, as do their Storling assets.

There has therefore been no diversification out of Sterling into other reserve currencies, because the rundown of commercial bank Sterling has used up £90mn of the £100mn allocated for this purpose.

no

(e. My (FRD)~

کے

Is Goodfellow

about this

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1

ерни Сори со ни сообраний

Wk

spoke PA 2

✓ HUIOD

WE Franklin 16 May '73

305

M... Capo

Скорой Dr. Ander de

twe

2215

oir, we had some correspondence

didn't

we

D08 21/5

years file)....

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