SOUTH CHINA MORNING POST
17/9/73
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One of the two English morning newspapers. members of the community. Circulation: 42,000.
Extract From Front Page Article
During his leave the Governor also'took part in the Treasury talks in London on the security for Hongkong sterling balances, which led to a temporary six-month extension of the sterling guarantee under a “standstill arrangement."
Last night the Governor was tight-lipped on the details of the British guarantee offer to the Colony, but said it contained some "very good elements."
The proposals were "highly technical" and there must, the Governor said, be "very thorough discussions on all these points."
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"Exactly whether we can go along with them or not should emerge from the discussions we will now be having with th Treasury."
The Financial Secretary, M C. P. Haddon-Cave, will involved in further detailed rounds of talks in London "in a sincere attempt to help the *situation,"
The Governor pointed out that the British had to meet the requirements of 60 separate sterling holders. but stressed Hongkong's unique position in "being compelled to hold a higher percentage of its reserves in sterling (89 per cent) than any other major sterling holder..
He declined to say whether British Treasury officials had shown any willingness during talks to case the level of our sterling reserves allowing diversification into other currencies, but added:
"We want to ensure during our talks that the offer can be adapted to Hongkong's special requirements."
Lady MacLchose will return to Hongkong later this month.