(ii)

(iii)

SECRET

!

that Ireland be permitted to continuo

to calculate its MSP obligation on a

book value basis (closer to a market

rate basis than the Australian parity

basis) but with the calculation of any

implementation payment on a market rate

basis, as in the Australian case;

!

that the Hong Kong MSP be adjusted from the 89% applicable under the previous Agreement (extending to the commercial

banks) to 80% under the present

arrangement (to take account of

non-inclusion of the commercial banks).

6. If the Chancellor accepts these recommendations, the agreed modifications to the offer can be communicated at official level.

(D.A. WALKER)

24 October 1973

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