MP 9/393/1

CONFIDENTIAL AND PERSONAL

Sir M MacLehose KCMG MBE

Governor and Commander-in-Chief HONG KONG

30 April 1973

29)

STERLING AGREEMENT

1.

2.

I was sorry that paragraph 2 of our telegram No 412 about

discussions on the future of the sterling agreements could do no

more than re-state the position as it was in telegram No 301.

I am writing now merely to confirm what is probably

obvious to you, namely that this very brief telegram reflects

the fact that we are now in an exceedingly complex situation with

work going on in the Luropean framework, the outcome of which is

still very uncertain. Until the situation is clearer, we simply

cannot initiate any meaningful discussions with Hong Kong or the

other sterling agreement holders and we cannot yet say how long

it will be before it is clear.

3.

we understand your concern about timing. I can only say

that our own intention is that talks should be held just as soon

as it is possible to do so.

cc

HBC Keeble

CW Fogarty Esq CB

HM Treasury.

RFenton Esq Bank of England.

Silent copies to: Mr Holland

Sent

✓Mr Stuart (HKIOD)3 Ar Goodfellow & P/A

27

CONFIDENTIAL AND PERSONAL

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