REPORTS IN TODAYS (12TH) PRESS OF CONCLUSION OF TALKS SAY HONG KONG IS BELIEVED TO HAVE PUT HEAVY PRESSURE ON BRITAIN TO MAKE
CLEAR ITS INTENTIONS ON FUTURE MANAGEMENT OF STERLING RESERVES
AND THAT PROPOSALS ARE EXPECTED TO BE MADE KNOWN IN FIRST HALF OF
NEXT MONTH. OBSERVERS ARE SAID TO ''SENSE THAT HONG KONG
DELEGATES ARE SOMEWHAT AGGRIEVED AT THE APPARENT LACK OF PROGRESS''.
HADDON-CAVE IS QUOTED AS HAVING CONFINED HIMSELF TO SAYING THAT
AN AGREEMENT IS ''A MATTER OF CRITICAL IMPORTANCE TO HONG KONG.....
WE ARE HISTORICALLY LOCKED INTO STERLING. WE ARE EXTREMELY VULNER-
ABLE BECAUSE OUR RESERVES ARE TO CONCENTRATED. UPON STERLING,
PRESENTING A VERY CONSIDERABLE EXCHANGE RISK,"
FCO PASS COPY TO FINLAYSON (EPD) AND MISS LACKEY (CREE2) (DTI)
ASTON
FILE S:
HEAD OF HKIOD
HEAD OF FRD HEAD OF EFD PS/MIR. ROYLE SIR E. NORRIS
COPIES TO:
MISS LACKEY, CRE 2, DTI.
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