CONFIDENTIAL
In Straet Ass
PA
ال2
Sir D Watson
Watson
HKK sli
VISIT OF MR R BARRATT TO HONG KONG
1.
I think we did fairly
well in our tall wilt For Bawalt
We shall see
the
aftian
how it goes! WW 14/11
You will be seeing Mr Barratt at 3.30 p.m. today. Mr Holland
and I will attend the call.
2.
Mr Barratt's visit to Hong Kong is partly familiarisation
and partly to consider what arrangements if any should follow the
temporary extension of the sterling guarantee which expires in
March 1974. On the latter point FRD have sent Hong Kong a copy
of the Chancellor's message to the independent finance ministers
Flag A 20of the sterling area (FCO telegram no. 1135). Mr Youde has pointed
out that while the message itself asks for comments, the telegram
to Hong Kong does not specifically do so. He suggested that in
order to avoid the reaction from Hong Kong that they had not been
consulted, we should send a follow up telegram making it clear
that we hoped for views from Hong Kong also.
3. I mentioned this to the Treasury who suggested we should discuss
this with Mr Barratt. He would not wish his visit to be pre-empted
in any way without consulting him.
4. We know that the Governor and Mr Haddon-Cave personally would
have preferred to have had no agreement for the interim period.
Presumably they will take the same line on the long-term future.
We have not told Mr Barratt of the Governor's views. Nor do I think
we should do so now. The Treasury may well take the view that there
should be no long-term agreement, but they should be left as far as
possible to draw this conclusion for themselves. We cannot stop the
Governor putting his views to Mr Barratt if he chooses to do so, but
/if this
CONFIDENTIAL