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could provide details.
bank
For the remaining sterling she could
see that the Hong Kong Government might not wish to offer the
banks the old guarantee but the banks might nevertheless think
it worth their while taking advantage of the UK's offer to go
on holding some sterling. She would like to discuss this with
Mr Haddon-Cave. For the future, Mrs Hedley-Miller stressed
that we were not trying to impose the proposed arrangement for
a long time. We were obliged because of the uncertainties of
the external situation to keep open the question of arrangements
to follow after the six-month period. But the Treasury would
like to get to grips with the idea of a new arrangement which
might last 2 or 3 years, pending the consideration of possible
substitution arrangements.
6. Sir Murray MacLehose commented that the inclusion or
exclusion of the banks bore upon the question of Hong Kong's
MSP. If the banks were excluded then, since their holdings of
official sterling were, by definition, 100% sterling, the
have
Hong Kong Government would not be able to make up the MSP from
But its own reserves alone. There could be no question of their
L
buying sterling in order to maintain an unrealistically high
MSP.
This was
7. Mrs Hedley-Miller found the point well taken.
where the arrangement might rub. They would have to discuss
this with Mr Haddon-Cave.
8. Mrs Hedley-Miller wondered whether it would be helpful if
a senior member of the Treasury came to Hong Kong within the
next 2 or 3 months for a visit and for discussion of broader
/future
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