1
0003160 G.F. 316
SECRET
ANNEX B TO XCS(73)9
Foreign and Commonwealth Office
Despatch from Secretary of State to AG Governor.
London S.W.1
MF 9/548/1
11 September 1973
:
His Excellency Sir Hugh Norman-Walker KCMG OBE JF Acting Governor HONG KONG
sir,
1.
I have the honour to refer to the attached copy of the Declaration made at London on 11 September 1973 by the Government of the United Kingdom of Great Britain and Northern Ireland in which the Government of the United Kingdom undertakes to maintain the sterling value in terms of the United States dollar of the balances of Hong Kong eligible for guarantee under the Sterling Agreement.
Official sterling reserves held with banks or other · depositaries in Hong Kong will be deemed not to be official sterling reserves for the purposes of this Declaration unless throughout the period that the provisions of the Declaration are in effect at least as much sterling as is deposited locally with each of those banks or other depositaries on official account is held directly in the United Kingdom for their account by the United Kingdom correspondents or head offices of such local banks or other depositaries. Evidence that such cover is held on 24 September 1973 and on the last working day of March 1974 vill be required from United Kingdom correspondents and head offices on instructions from local banks and other depositaries. Auditors' certificates will be required for the same dates for any eligible assets held physically with local banks or in transit from them to the United Kingdom."
3.
*
Subject to the foregoing and to the provisions of the Declaration none of the provisions of any other agreements, arrangements or understandings, whether oral or written, made or reached between the Government of the United Kingdom and the Government of Hong Kong, or their respective agents, for the purposes applying or interpreting the Sterling Agreement will be regarded by the Government of the United Kingdom as in any way affecting the application or interpretation of the Declaration.
I have the honour to be,
Sir,
Your Excellency's Obedient Servant
Ala Vila Flowe
SECRET