(100)
SECRET
Mr Goodfellow (HKIOD)
ellow (HKI
Reference. MF 9/393/1
Used in
STERLING AGREEMENTS: HONG KONG
1.
PA my
teller
17,5
[0]
I have discussed Mr Aston's letter of 8 August with Mr St Clair in the Treasury. While one can sympathise with Mr Aston's frustration at being unable to rebut the criticism levelled at Britain in Hong Kong (Financial Times of 16 August contains an interesting report), there is nothing we can do for him.
2.
We have not sent out general background guidance to our Embassies and High Commissions about Sterling and the Sterling Agreements, and certainly not to enable them to discuss the matter with the media or business
men.
What they have received has been to enable them to carry out instructions to talk to, and where necessary negotiate with, the other Governments concerned. However, the constitutional position in Hong Kong means, as you know, that we deal with that Government directly, and not through a UK Representative. Indeed, when very complex matters, have been under discussion we have sent out teams of experts from the Treasury and/or the Bank to do the talking(not only to Hong Kong).
3. Moreover given the sensitivity of those concerned in Hong Kong, notably the Financial Secretary, it seems to us that it could be very dangerous to attempt any informal departure from the constitutional proprieties in this field. With all respect to Mr Aston, this is in any case a subject in which a little learning can be very dangerous, and the Hong Kong/sterling question is one of the most complicated as well as the most delicate that we have. (Indeed, I would have thought that Mr Aston would in this respect welcome his ability to turn aside all questions and recriminations by saying that Sterling is not his business.)
16 August 1973
Dihento
D I Lewty
Financial Relations Dept
SECRET
OD 145177 219212 500M 4.73 GM 3643/2