GRS 185
EN CLAIR
M HONGKONG 170820Z
UNCLASSIFIED
ORWELL
TO ROUTINE FCO TEL BTC 164 OF 17 DEC. 1973
STERLING RESERVES
REOT
18 DICIE
PA
2
HKK 5/1
18.xu
252
ALL ENGLISH AND CHINESE PRESS OVER THE WEEKEND AND TODAY CARRY THE
ANNOUNCEMENT OF THE
'UNDERSTANDING UNDER WHICH HONG KONG WILL
PARTICIPATE IN ARRANGEMENTS FOR THE GUARANTEE OF ITS STERLING
MOST
BALANCES UNTIL 31 MARCH 1974. MOST ALSO CARRY ADDITIONAL COMMENT
BY THE FINANCIAL SECRETARY THAT AGREEMENT IS IN RESPECT OF OFFICIAL STERLING HOLDINGS ONLY, IS ''SATISFACTORY TO BOTH SIDES AND RESULT OF DETAILED DISCUSSIONS EXTENDING OVER SOME MONTHS''
GENERAL TENOR OF THE REPORTS AND OF THE ONLY EDITORIAL CSUNDAY POST
HERALD) SO FAR GIVES CREDIT TO HONG KONG GOVERNMENT FOR NEGOTIATING
AGREEMENT COVERING HONG KONG'S INTERESTS DESPITE (BY INFERENCE)
RELUCTANCE ON PART OF BRITISH GOVERNMENT AND GIVES CREDIT ALSO TO THE BANKS FOR THEIR ''LOGICAL AND CANNY ASTUTENESS'': THERE
IS VIRTUALLY NO HINT OF CREDIT TO THE UK GOVERNMENT FOR THEIR PART
IN THE AGREEMENT.
2
i.
NEWS IS SET ALONGSIDE HEADLINE STORIES OF UK'S ECONOMIC
CRISIS WITH THE QUESTION BEING ASKED WHETHER STERLING WILL STANDI
BY MARCH AND WHAT WILL THEN HAPPEN TO SECURE HONG KONG'S POSITION.
COPIES OF PRESS REPORTS FOLLOW BY BAG TO DARRETT (TREASURY),
STUART CHKIOD), MISS LACKEY CORE 2)..
ASTON
ORWELL DISTRIBUTION
FRD
HKIOD
PS/MR ROYLE
期