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arrangement and seven weeks remained until the end of the Sterling Agreements. Mr Haddon-Cave refused to consider a compromise on this basis and Mrs Hedley-Miller pointed out that whatever the rights under the Haddon-Cave/Bell facility, it clearly stated that no more than £20 million should go out of the Exchange Fund and that this concession ended in April. In view of Mr Haddon-Cave's refusal to acknowledge the Treasury position, she would be forced to write to him.
This she did subsequently in a letter written on 10 August which I understand maintained the Treasury position on the principle but continued on the lines that as the sums authorised by Mr Haddon-Cave were very nearly the same as those authorised by the Treasury, they would not object provided that these sums were not increased.
Hong Kong Government Paper
As it was now 1pm, Mrs Hedley Miller said that she did not propose to discuss this but wished to place on record the importance HMG still attached to establishing the Hong Kong currency position on a more modern basis. Mr Haddon-Cave flushed with anger and said that this was not relevant to the question of the Sterling Agreements and refused to discuss it but continued for about ten minutes pouring scorn on the Treasury position. The main point which appeared to emerge was that he considered it would concentrate ownership of sterling and this would only benefit the United Kingdom.
Press Statement
It was agreed that Mr Haddon-Cave would confine his statements to the press on arrival in Hong Kong to the lines that he had had useful discussions; the Chancellor was going to send a further message; he could not say more.
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13. VI.73.