ORWELL:
MR VRIGHT
MR HOLLAND
ADVANCE COPIES
MR MARSHALL
PS/M Royle
Sid warson..
D
7HD FRD (2)
HD ECONOMISTS DEPT (MISS HARVEY)
·HS HKIOD
uro
TREASURY:
PA
2 st.
MR FR BARRATT
181)
LED)
Mr. W. h. St. Clair,
Mr. D. A. Walker, MRS HEDLEY-MILLER
(SEND DIRECT)
BANK OF ENGLAND):
MR R P FENTON
MR S W PAYTON
MR RE BARBER
CYPHER/CAT A
FM HONG KONG 050900Z
SECRET
ORWELL
12
20
TO IMMEDIATE FCO TELNO 1133 OF 5 OCTOBER.
A
YOUR TELEGRAM 983.
STERLING GUARANTEE.
YOUR PARAGRAPH 1 (1): WE DO NOT HAVE FIRM FIGURES OF THE ACTUAL (READY AND FORWARD) STERLING POSITIONS OF THE COMMERCIAL BANKS ON 24 SEPTEMBER AND IT WILL BE A FEW WEEKS BEFORE WE HAVE THEIR 38
SEPTEMBER POSITIONS IN STERLING AND ALL OTHER FOREIGN CURRENCIES. BUT, AT 31 AUGUST, BANKS' READY POSITIONS IN STERLING AMOUNTED TO POUNDS STERLING 213 MILLION AND THEIR NET OVERBOUGHT POSITIONS (1.E. NET OF FORWARD SALES) AMOUNTED TO POUNDS STERLING 110 MILLION. THE TOTAL OF BANKS' DEPOSITS WITH THE EXCHANGE FUND COVERED
BY THE EXCHANGE FUND GUARANTEE SCHEME WAS POUNDS STERLING 220
MILLION ON 24 SEPTEMBER,
2. YOUR PARAGRAPH 1 (11): WE DO NOT KNOW THE EXTENT OF BANKS' FORWARD SALES MATURING AFTER 24 SEPTEMBER, BUT WE HAAVE ESTIMATED (VERY ROUGHLY) THAT THEIR NET OVERBOUGHT POSITIONS IMMEDIATELY AFTER 24 SEPTEMBER WERE A MAXIMUM OF POUNDSS STERLING MILLION
/ FAND