PRIORITY
CRPS 2775
CYPHER/CAT A
FM HONG KONG 2500507
CONFIDENTIAL
"11
TOP COPY
CONFIDENTIAL
TO PRIORITY F C O TELNO 953 OF 25TH AUGUST, 1973.
MY TELEGRAM NUMBER 931.
STERLING GUARANTEE AGREEMENTS.
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IN M.I.F.T. I AM COPYING TO YOU A LETTER ADDRESSED TO ME BY THE
SENIOR UNOFFICIAL MEMBERS OF THE EXECUTIVE AND LEGISLATIVE COUNCILS ON THE CONTINUING UNCERTAINTY ABOUT THE FUTURE, IF ANY,
OF THE STERLING GUARANTEE AGREEMENTS. IT WELL CONVEYS THE
STRENGTH OF FEELING HERE ON THIS ISSUE. IN ACKNOWLEDGING IT, I
HAVE TOLD MR. WOO THAT I WOULD BRING IT TO YOUR ATTENTION.
2,
THE LETTER CONTAINS FOUR MINOR SLIPS, VIZ
PARAGRAPH 1
AFTER THE PHRASE "THE RENEWAL OR NON-RENEWAL OF THE EXISTING
GUARANTEE'' SHOULD APPEAR THE WORDS 'SUITABLY AMENDED’’.
PARAGRAPH 3
THERE WAS A REVIEW IN A SENSE IN THE AUTUMN OF 1971. OUR
MSP WAS DROPPED FROM 99 PER CENT TO 89 PER CENT AND ALL BUT
ONE OR TWO OF THE AGREEMENTS WERE RENEWED. IT WAS THE
PROMISED MARCH 1973 REVIEW WHICH WAS NEVER HELD.
PARAGRAPH 5
IT IS NOT SO MUCH A MATTER OF SPECIAL TREATMENT BECAUSE OF OUR
SPECIAL POSITION VIS-A-VIS BRITAIN, BUT BECAUSE OF OUR
SPECIAL RELATIONSHIP WITH STERLING ( VERY LARGE BALANCES AND A HIGH MSP).
CONFIDENTIAL
/PARAGRAPH 6