IMMEDIATE
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RECEIVES IN
REGICTR, No. 51
28 DECIS
CONFIDENTIAL.
REZ
HKK 5/1
TO IMMEDIATE GOVERNOR HONG KONG TELNO 1310 OF 20 DECEMBER. 1973
YOUR TELNO 1475: STERLING GUARANTEE.
THANK YOU FOR YOUR TELNO 1475 ABOUT THE PQS,
PA
WE CONSIDERED A PHRASE ON THE LINES YOU SUGGEST, BUT DECIDED NOT TO INCLUDE IT. WE ARE NOT CHALLENGING THE PROPOSITION, BUT THINK IT IMPORTANT TO STICK TO THE LINE THAT WE HAVE HELD IN THE PAST: NAMELY, THAT THE GUARANTEE SCHEME IS BASED ON SECRET BILATERAL UNDERSTANDINGS BETWEEN HMG AND INDIVIDUAL OFFICIAL HOLDERS.
IT WOULD BE INCONSISTENT WITH THIS, AND WITH THE MUTUAL TRUST ON WHIO THESE ARRANGEMENTS DEPEND, FOR HMG TO COMMENT ON EITHER THE DETAIL OR THE OPERATION OF THESE UNDERSTANDINGS WITH HONG KONG OR ANY
OTHER HOLDER.
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PS/ MR ROYLE
KR MARSHALL
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MR I A WALKER
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