GRS 290
PRIORITY CYPHER/CAT A
CONFIDENTIAL
RECEIVED IN REGISTRY 'No. 51
12 NÜVI9/3
A1 FCO 81110Z
HKK 5/1
PA
2
I FOD 12-71
1204
195A
CONFIDENTIAL
1973
TO PRIORITY GOVERNOR HONG KONG TELNO 1135 OF 8 NOVEMBER AND TO
ROUTINE GOVERNOR BELIZE
STERLING GUARANTEES
THERE FOLLOWS BELOW THE TEXT OF A MESSAGE THE CHANCELLOR IS
SENDING TO HIS COLLEAGUES IN COMMONWEALTH COUNTRIES WHO RE
PARTICIPATING IN THE PRESENT SUARANTEE. ARRANGEMENTO:
1. AT THE MEETING OF COMMONWEALTH FINANCE MINISTERS AT DAR-ES-
SALAAM IN SEPTEMBER I MADE IT CLEAR HOW MUCH I REGRETTED THAT :
HAD NOT DEEN ABLE TO CONSULT MORE FULLY ABOUT THE EXTENSION OF THE
STERLING GUARANTEES AFTER 24 SEPTEMBER, AND PROMISED TO GET INTO TOUCH FOR THE PURPOSES OF CONSULTATION ABOUT WHAT ARRANGEMENTS ! IN REGARD TO THE STERLING BALANCES HIGHT BE APPROPRIATE. WHEN THE
PRESENT GUARANTEES EXPIRE ON 31 MARCH NEXT YEAR.
2.
I AM ACCORDINGLY NOW WRITING TO INVITE YOUR VIEWS ON THESE
MATTERS. THE GENERAL RESPONSE TO THE UK DECLARATION OF SEPTEMBER
HAS, I THINK, REFLECTED THE RECOGNITION OF OUR COMMON INTEREST IN AVOIDING DEVELOPMENTS WHICH COULD PREJUDICE HINTERNATIONAL
MONETARY STABILITY AT A TIME OF CONTINUING UNCERTAINTY, IT DOES NOT NECESSARILY FOLLOW, HOWEVER, THAT SIMILAR ARRANGEMENTS WILL
BE APPROPRIATE AFTER 31 MARCH. I MYSELF STILL HAVE A VERY OPEN · MIND ON WHAT WOULD BE BEST. THE CENTRAL QUESTION IS WHETHER A
FORMAL PATTERN OF MUTUAL OBLIGATIONS WILL CONTINUE TO BE TO THE
ADVANTAGE OF ALL OF US.
IF YOUR VIEW IS THAT IT WOULD, YOU MAY WANT
CONFIDENTIAL