460
Send"
2 FIM 13/47/01
LART
RCF.
MET
REF.
26
6 March 1973
RECEIVED HI
REGISTRY I'
11 MAR 1973
MF9/393/1
36
fi
Thank you for your letter of 3 March (which I received the day before !),with which you enclosed a draft in response to Hong Kong telegram Orwell 108 of 17 February.、
30
The first paragraph of your draft is directed to the question put. I am afraid that I cannot soo why it would bo advantageous to open up the other points with Hong Kong at this moment, in the absence of a clear context for exchanges of views.
What the Governor was coking, perhaps with a tinge of criticion or complaint, was that we should let him know sooner rather than later, what we proposed about the renewal of the Sterling Agreements. There are indeed pointo which may have to be made to Hong Kong at some time about grester or le ser losses from different kinds of reserve holdings: about long-Kong'a dollar parity: and about the Exchengo Fund Guarantee Scheme. But on none can we say anything positively helpful to the Governor. On the contrary, the points in mind are necessarily somewhat on the sharp side. I would much rather keep sharpness for a negotiation, when it can be followed up as part of an attempt actually to achieve something in a practical situation.
I really think the correct answer to the telegram is:
"Your concern is noted. Wo will be in touch with
you about renowal as soon as we can.
##
}
Would you be content with this?
F
I am sending a copy of this letter to Mr Kooblo, FCC.
S Payton Esq Bank of England
Mrs M B Hodley-Miller