GRPS 250
PRIORITY
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معسكسمت
الضمو لمس كلمن
FM HONG KONG 220845Z
[ORWELL]
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Rando. And I?S.?.
کسا
HK
should bear the
level of hot and 26 sejr 1973.
10
TO PRIORITY F C O TELNO 1215 OF 22ND OCTOBER, 1973. PA
YOUR TELEGRAM NUMBER 1054.
村
STERLING GUARANTEE.
INEA
205
22.x
.THE BOOK VALUES OF GOVERNMENT ASSETS AS AT 26TH SEPTEMBER 1.E. AFTER ADJUSTMENT PAYMENTS HAD BEEN EFFECTED AND AFTER FULL DETAILS HAD BEEN RECEIVED FROM ALL OUR AGENTS OF PURCHASES, SALES, SWITCHES, ETC. UP TO THAT DATE) HAVE NOW BEEN FINALLY CALCULATED AS FOLLOWS: STERLING ASSETS AT POUNDS 348.14 MILLION AND NON-STER- LING ASSETS AT POUNDS 85.50 MILLION, TOTALLING POUNDS 433.64 MILLION. THIS GIVES US A STERLING PERCENTAGE OF 80.28. A COPY OF THE STATEMENT ON WHICH THESE FIGURES ARE BASED WAS GIVEN TO PAYTON
OF THE BANK OF ENGLAND BEFORE HE LEFT HONG KONG ON FRIDAY EVENING.
2.
WE SHALL MAINTAIN OUR STERLING ASSETS AT THE LEVEL RULING ON 26TH SEPTEMBER, (AT CONVENTIONAL BOOK VALUES), BUT WHETHER OR NOT THIS RESULTS IN THE MAINTENANCE OF AN INFORMAL MSP OF 80.28
PER CENT WILL DEPEND ON HOW WE REINVEST OUR NET STERLING RECEIPTS (1.E. INTEREST PAYMENTS LESS CURRENT LIABILITIES). YOU ARE AWARE THAT EXECUTIVE COUNCIL'S ADVICE WAS THAT OUR CONTRIB- UTION TO STABILITY SHOULD BE BY WAY OF MAINTAINING DUR ASSETS
AT A GIVEN LEVEL AND NOT BY OBSERVING A PARTICULAR MSP,
3.
PRESS INTEREST HERE HAS TEMPORARILY DIED DOWN, BUT IT IS BOUND TO REVIVE IN DUE COURSE. MEANWHILE, WE SEE NO DIFFICULTY IN HOLDING THE LINE THAT DISCUSSIONS ARE CONTINUING. BUT I THINK BARRATT'S VISIT SHOULD BE IN THE LATTER PART OF NOVEMBER TO GIVE US MORE TIME TO GET THIS MATTER SETTLED BEFORE HE COMES OUT. IF HE COULD LET US KNOW HOW LONG HE WILL BE HERE WE SHALL HAPPILY ORGANISE A PROGRAMME
FOR HIM.
MACLEHOSE
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