EXCHANGE OF LETTERS ON MONETARY QUESTIONS
Your Excellency,
Brussels, 22 January 1972
1. At the Ministerial Meeting of the Conference on 7 June 1971, it was agreed that the declaration on monetury questions which I made at the Meeting should form the subject of an exchange of letters annexed to the Act concerning the Conditions of Accession and the Adjustments to the Treaties. I therefore now have the honour to confirm that at that Meeting I made the following declaration:
"(a) We are prepared to envisage an orderly and gradual run-down
of official sterling balances after our accession,
(b) We shall be ready to discuss after our entry into the Communities what measures might be appropriate to achieve a progressive align. ment of the external characteristics and practices in relation to sterling with those of other currencies in the Community in the context of progress towards economic and monetary union in the enlarged Community, and we are confident that official sterling (*) can be handled in a way which will enable us to take our full part in that progress.
(c) In the meantime we shall manage our policies with a view to stabilising the official sterling balances in a way which would be consistent with these longer term objectives,
(d) I hope that the Community will regard this statement as disposing satisfactorily of the question of sterling and associated matters, leaving only the arrangements for U.K. compliance with the Directives relating to capital movements under the Treaty of Rome to be settled in the course of the negotiations."
2. At the same meeting on 7 June, the above declaration was agreed by the Community delegation.
3. I understand that the delegations of the Kingdom of Denmark, Ireland and the Kingdom of Norway have also signified their agreement to the above-mentioned declaration as confirmed by the present letter.
4. I would be grateful if you would kindly acknowledge receipt of this letter and confirm the agreement of the Governments of the Member States of the Community and of the Governments of the Kingdom of Denmark, Ireland and the Kingdom of Norway to the above-mentioned declaration. Please accept, Your Excellency, the assurance of my highest consideration.
Monsieur G. Thorn,
Ministre des Assaires Etrangères
du Grand-Duché du Luxembourg.
GEOFFREY RIPPON
Mr. G. Rippon,
Chancellor of the Duchy of Luncaster.
(•) "Official sterling" means "official sterling balances".
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ANNEX C