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Foreign and Commonwealth Office London SW1

His Excellency

Sir Murray MacLehose KCMG MBE

Governor

HONG KONG

Telephone 01-

file

164

Our reference

Your reference

PICKS) |

Date

27 September 1973

1

Dear Sir Amway,

HONG KONG AND STERLING

1.

202 155

I enclose a record of your talk with the Treasury on

14 September. Mrs Hedley-Miller has agreed this on her return from Dar-es-Salaam.

2.

We have not yet got an authoritative account of Barratt's talks with Haddon-Cave in Dar. But according to Mrs Hedley-Miller (who was not herself present) these went well; led to a tentative agreement that the 89% MSP need not be applied at once, but should be built up to during the six months; and ended with the ball in your court once Haddon-Cave had got back to Hong Kong, investigated the position of the banks and cleared the MSP proposal with the rest of your Government.

our

3. We hope that this may all indeed be so, though much will depend on the fine print of the Treasury record when they produce it (they are at the moment plunged in the IMF). If, however, understanding is completely astray, and particularly if your position still is that there can be no question of going back to an 89% MSP, even over time, then no doubt you will let us know. It is obviously important that we should all be of the same mind at least on where action lies.

Yours ever,

Andrew Ship

A C Stuart

Hong Kong & Indian Ocean Department

ENC: 1

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