CONFIDENTIAL
FOLLOWING THE OFFER BY HMG TO GUARANTEE CERTAIN OFFICIAL STERLING BALANCES IN THE SIX MONTH PERIOD FROM 24 SEPTEMBER, THERE HAVE BEEN DISCUSSIONS WITH THE HONG KONG AUTHORITIES ON THE APPLICATION OF THIS OFFER TO HONG KONG. THESE DISCUSSIONS CENTRED PRINCIPALLY ON THE OFFICIAL BALANCES HELD WITH THE HONG KONG COMMERCIAL BANKS, WHICH IT IS NO LONGER APPROPRIATE TO COVER UNDER THESE ARRANGEMENTS. CONCLUSIONS SATISFACTORY TO BOTH SIDES HAVE BEEN REACHED. UNQUOTE" 4. THIS DRAFT ANSWER WILL BE SUBMITTED TO MINISTERS HERE TOMORROW MORNING AND WE WOULD APPRECIATE ANY COMMENTS NOT LATER THAN 10.00 AM.
DOUGLAS HOME
FILES
HKIOD
FRD
PS/MR ROYLE
PARLIAMENTARY UNIT
MR MARSHALL
MR HOLLAND
COPIES TO:
MR D A WALKER
MR FR BARRATT
- TREASURY
HONG KONG GOVERNMENT OFFICE
6 GRAFTON STREET W 1
2
CONFIDENTIAL