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IMMEDIATE
CYPHER/CAT A
GPS 250
FM HONG KONG 280140Z
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REF.
REF.
TO IMMEDIATE F C O TELNO 931 OF 20TH AUGUST, 1973
FOR SIR DUNCAN WATSON FROM ACTING GOVERNOR.
TOP COPY
106
CVD N
No.51
STERLING GUARANTEE AGREEMENTS.
HKIL
Rea 108
تو
3/1 x
ва
IN ADVANCE OF THE MINUTES REACHING YOU BY NORMAL CHANNELS,
I THINK I SHOULD LET YOU HAVE THE FOLLOWING EXTRACT FROM THE MINUTES OF THE MEETING OF EXECUTIVE COUNCIL OF 14TH AUGUST LAST, VIZ:
''OTHER BUSINESS
(A) THE FINANCIAL SECRETARY REPORTED TO THE COUNCIL ON HIS VISIT
TO LONDON IN CONNECTION WITH THE FUTURE OF THE STERLING GUARANTEE ARRANGEMENTS ON THEIR EXPIRY ON 24TH SEPTEMBER. (B) COUNCIL EXPRESSED CONSIDERABLE CONCERN AT THE ATTITUDE SHOWN BY HER MAJESTY'S GOVERNMENT TOWARDS HONG KONG'S STERLING RESERVES. THE RESERVES WERE VITAL TO THE FINANCIAL AND ECONOMIC WELL-BEING OF THE COLONY ON WHICH ALL FUTURE SOCIAL PROGRESS DEPENDED AND IT WAS TO BE DEPLORED, NOT ONLY THAT HER MAJESTY'S
GOVERNMENT WERE IN APPARANT BREACH OF THEIR UNDERTAKING TO
(C)
·
CONDUCT A REVIEW IN MARCH THIS YEAR, BUT ALSO THAT THEY
WERE STILL NOT IN A POSITION TO ENGAGE IN MEANINGFUL DISCUSSIONS WHEN THE STERLING GUARANTEE ARRANGEMENTS WERE DUE TO EXPIRE NEXT MONTH.
THE FINANCIAL SECRETARY CONFIRMED THAT COUNCIL WOULD BE KEPT IN TOUCH WITH DEVELOPMENTS AND ANY PROPOSED GUARANTEE AGREEMENT WOULD BE REFERRED TO COUNCIL FOR ADVICE.''
PLEASE PASS COPY TO SIR MURRAY MACLEHOSE
NORMAN-WALKER
FILES
HKIOD
FRD
SIR D VATSON
MR MARSHALL
MR HOLLAND TR WILFORD
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