Registry No. DEPARTMENT
SECURITY CLASSIFICATION
Top Secret
Secret
Confidential
Restricted
Unclassified
* Date and time (G.M.T.) telegram should
reach addressee(s).
PRIORITY MARKINGS
(Date)
Flash
Despatched
}
Immediate
Priority Routine
PRIVACY MARKING
In Confidence
[Sec
[Security classification"
-if any
En Clair.
[
Privacy_marking -if any
]
CONFIDENTIAL
Code
Cypher
Draft Telegram to:-
No.
HONG KONG
(Date)
And to:--
[Codeword-if any]
Addressed to
telegram No..
No..............
And to
repeated for information to
Saving to...........
ORWELL
HONG KONG
(date)
YOUR TELNO 188: STERLING AGREEMENTS
Repeat to:-
1.
Saving to:-
We recognise the difficulty in which you have
been placed through the recent changes in the inter-
national monetary situation and the fact that in
Hong Kong dollar terms there has been an increased
loss based on current market rates on your sterling
though, since the only practicable
reserves
-
alternative reserve currency would have been US
dollars, a larger holding of these would have
involved even greater loss.
Distribution:-
2.
Copies to:-
Unfortunately, the constantly changing.
situation which has, as you will have seen, involved
some discussion of the future of the sterling
balances has further complicated the process of
consideration of the arrangements which might follow
the expiry of Sterling Guarantee Agreement. We have
very much in mind the difficult decisions with which