17/8
SECRET
C
PS/Mr Royle
HONG KONG: STERLING AGREEMENTS
HKK 5/1
бо
同
63
B
1. The Sterling Agreement with Hong Kong expires (in common
with those for the other 55 signatories) on 24 September.
After discussions between the Prime Minister and Chancellor
it was decided that a final decision on what if anything
might succeed them should be taken in time to communicate
with Agreement holders in early September. This may not be
until just before the Commonwealth Finance Minister's Meeting
(17 September).
2.
The Chancellor sent an interim personal message on
31 July to the Governor (FCO telegram number 742) (and on
similar lines to all the signatory governments,) to inform him
that consideration was being given to whether some sort of
arrangement like the Sterling Agreements should replace them;
and inviting views.
3.
For several months Hong Kong have been pressing for an
indication of what the future position would be. In view of
the timetable for Ministerial decisions it has not been
possible to say anything positive to any of the Agreement
holders, although it has been emphasised to the Governor
(FCO telegram number 755) that it should not be assumed that
no arrangements will be made in relation to official sterling
/balances
SECRET 1.