d.897459 250m 12/72 G.W.B.Ltd. Gp.863 )d.897300 250m 9/72 G.W.B.Ltd. Gp.863
NOTHING TO BE WRITTEN IN THIS MARGIN
Registry 9/01/1
SECURITY CLASSIFICATION
Top Secret
Secret.
Confidential
Restricted.
Unclassified.
PRIVACY MARKING
---In Confidenc
DRAFT
Letter
To:-
Mrs R E J Gilmore HM Treasury
Type 1 +
FROM
D I Lewty Telephone No. Ext.
Department
FRD
STERLING AGREEMENTS:
SMALLER DEPENDENT TERRITORIES
cc.
Mr R E Barber Bank of England
Mr FR McGinley
GGD
WIAD
PDTD
HYIOD
Ma Krain kelim Grommets D Ma Baristome bagel Alvitens
1. As agreed, I am writing formally to send the
FCO's news that our special responsibilites to the
smaller Dependent Territories (ie other than Hong Kong,
Belize and Bermuda) requires that HMG should treat
them more favourably than other recipients of the
I proposed
led Unilateral Declaration, by making their eligible balances, those held on the last working day of l'arch 1974 rather than the lower of those and balances
held on 24 September 1973.
2. We have not so far been able to trace any
requirement for these territories,
other than their
obligations under their Sterling Agreements,to
hold all o
most of their reserves in Sterling,
but they lack the resources financial or
personnel
to do otherwise, and we would not wish
them to try. Consequently we ought to guarantee
any increases in their holdings of sterling after
(Many of them are dependent on budgetary
24 September.
support grants-in-aid, so their holdings on that date
might be untypically low)
3. The possible costs of such a concession would not,
I imagine, be large. And if other holders got to hear
of it, we could reasonably defend it on the rounds of
our special reponsibilities to, and the special