HONG KONG: STERLING AGREEMENTS
1. The Sterling Agreement with Hong Kong expires (in
common with those of the other 56 signatories) on
24 September.
The Chancellor sent an interim personal
message on 31 July to the Governor (and on similar
lines to all the signatory Governments).
2. It has not been possible to say anything positive
1
to any of the Agreement holders although it has been
emphasised to the Governor that it should not be
assumed that no arrangements will be made in relation
to official Sterling balances after 24 September.
3. May I emphasise that the contents of the
Chancellor's message have not yet been settled and
any press comments, even if they claim to delve from
authoritative sources, are pure conjecture.
4.
In the absence of the Chancellor, the Governor
saw the Minister of State to the Treasury, Mr John Nott
(the Minister in Charge) and Mr Mitchell, the Second
Permanent Secretary at the Treasury on Thursday
afternoon, 9 August. At this meeting both sides
explained their respective positions.
5.
Subsequently, Mr Haddon-Cave, Mr Blye and
Mr Patterson had discussions with senior Treasury and
Bank officials on 10 August. In the absence of any
information on the position following 24 September
the discussion centred on what alternatives the
Hong Kong Government would prefer to see.
SECRET
16.