ail
Mr Stuart
SECRET
Reference.......
PA
Thanks
Des
31/8
3/11
major
104
STERLING
1.
This has been our single pre-occupation since your
departure.
the
so many!
principle
Sorry
2. I attach file and I have flagged the pieces which I think you will wish to read. there are 3. In brief following what Treasury describe as "ultimatums" from the Governor ending in a request for him and Haddon-Cave to see the Chancellor, a meeting was arranged on Thursday 9 August with Mr John Nott, Minister of State in the Treasury, who was then in charge.
the Chancellors the Chancello
were
sage Unacceptable.
4. The difficulty is that no decision has been taken by the Chancellor who has consulted the Prime Minister,
ten about what, if anything, might be done on Sterling Agreements on 24 September. The Treasury are therefore unable to say anything to Hong Kong. The Governor therefore found the talks unsatisfactory and we are in a sense no further forward because of them. The Secretary of State has been kept informed and there is unlikely to be any further difficulty with the Hong Kong Government until the second message from the Chancellor, which will probably go out in the second week of September (when the Governor is here).
Mr Wilford mentioned in passing that it would probably
The be worth having Haddon-Cave here at that time too, when he would in any case be on his way to the Commonwealth Financial Ministers meeting in Dar-es-Saalam. &f this was left in the air. ife H.C. will be london on MRTS
де ніс. он 29/30 Auquor el seq.
5.
When the Chancellor's message is known it would be fronthe Hong Kong Government to accept whatever is offered (if anything), or to reject it. Mr Haddon-Cave has made it clear he was he said "totally indifferent" - to what might falloprovided that Hong Kong could diversify out of sterling This he suggested might be of a phasing programme probably £20 million per month for a year
but this would need to be linked with a guarantee for the money which they were phasing, but not for the 50% of their reserves they would still retain in sterling voluntarily. The Treasury have not commented on this proposal.
6.
Catherine Pestell is fully in the picture.
17 August 1973
SECRET
ك الى الله
M A Goodfellow
(17293) 897465 400m 1/73 G.W.B.Ltd. Gp.863
PTO