CVPHGR/CAT A
ADVAN
TT HONG KONG 1019307
CONFIDENTIAL
Fires
に
W/25+
"V"Loncin. MirER Barrali
HM Treasury
TO MMEDIATE FCO TELCO 1474 OF 10 DECEMB @ INFO IMMEDIATE HONG KONG EDVERNMENT OFFICE LONDON (FCO PLEASE PASS).
FOR BARRATT (TREASURY) FROM HADDON-CAVE,
WITH REFERENCE TO THE ARTICLE IN THE BUSINESS SECTION OF THE
SUNDAY TIMES OF 16 DECEMBER, WE BUGGEST THAT THE HONG KONG
COMMISSIONER IN LONDON GNDULD BEND A LETTER TO THE EDITOR ALONG THE FOLLOWING LINES, PROVIDED YOU THINK IT COULD DE HELPFUL, VIZI
QUOTE IN THE DUSINESS SECTION OF YOUR EDITION OF 16 DECEMBER, YOU CARRIED A HOST INACCURATE REPORT CONCERNING THE WAY IN WHICH HONG KONG HAS MANAGED ITS STECLING DALANCES. AT NO TIME, IN THE PAST OR IN THE PRESENT, DAS HONG KONG гOSEN QUOTE A STARTLING AND UNEXPECTED THREAT TO THE ROUND UNQUOTE.
NEITHER THE HONG KONG COVERIMENT KOR THE COMMERCIAL DANKS HAVE DEEN MAJDO SELLERS OF STERLING BURING THE PAST FEW WEEKS AND NEITHER THE COVERIMENT COR THE NANKS, THEREFORE, HAVE BEEN RESTONBIELE IN ANY WAY FOR THE RECENT DECLINE IN THE EXCHANGE VALUE OF STERLINO, AND, KON THAT THE GOVERNMENT'S BALANCES ARE COVERED BY THE SIX-OUTH GUARANTEE ARRANGEMENT, THERE IS NO QUESTION OF SALES BY THE GOVERNMENT IN THE VECKS AHEAD.
ANY SIGNIFICANT CONTRACTS FOR FORWARD GALES BY THE DANKS WOULD HAVE BEEN ENTERED INTO SOME MOUTHS AGO WHEN THE FUTURE OF THE GUARANTEE ARRANGEMENTS WAS UNCERTAIN AND WHEN THE RATE FOR STERLING STOOD MELL ABOVE UNITED STATES DOLLARS 2.4213.
17 18 TRUE THAT THE LONG KONG GOVERNMENT HAS BEEN ENGAGED IN DISCUSSIONS WITH H。。 FOGADUDY OVER THE MANAGEMENT AND SECURITY OF THE COLONY'S STERLING DALANGES FOR COME TIME, BUT THESE DISCUSSIONS HAVE BEEN CONDUCTED IN A FRANK AND FRIENDLY AT:OSPHERE UNQUOTE.
MACLEKOSE
٢١٢١٢١٢١