sent
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SECRET
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this is the
ce Day record
espectally
6
see
727-12.
then PA.
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HONG KONG STERLING AGREEMENTS
Note of a meeting held in the Treasury on 10 August 1973.
14.0
༥
Present:
Mrs M E Hedley-Miller
Mr Haddon-Cave
Mr Blye
Mr Patterson
Mr Payton
Mr Rackham
Miss Pestell
Mr Goodfellow
Mr St Clair
Mr Bostock
The Existing Agreement
1.
(Chairman)
Financial Secretary, Hong Kong Accountant General, Hong Kong
Exchange Controller, Hong Kong Bank of England
Bank of England
Foreign and Commonwealth Office Foreign and Commonwealth Office Treasury
Treasury
Mr Haddon-Cave said that, at the meeting on 9 August, the Minister of State had implied that there would be discussion of the Sterling Agreements at the forthcoming Commonwealth Finance Ministers meeting. Mr Haddon-Cave wished to emphasise that such discussion might be embarrassing to HongKong since the HongKong authorities have criticisms of the agreements and yet are inhibited from making any public criticism of HMG.
2.
Mrs Hedley-Miller said that the future of the Sterling Agreements would not be on the agenda of the Commonwealth Finance Ministers. This was not a suitable topic since some of the important sterling holders were not members of the Commonwealth. The subject would not
be raised at the initiative of the British, but obviously the Chancellor of the Exchequer might be asked questions informally by his colleagues from other countries.
3. Mr Haddon-Cave said that, as far as the HongKong Government's holdings of sterling were concerned, forward selling was forbidden. It would be difficult for the HongKong Government to persuade the HongKong banks not to begin diversification, but he had undertaken
to use his best endeavours.
1