IMMEDIATE
GRPS 185
CYPHER/CAT A
FM HONG KONG 1109352
SECRET
SECRET
238
RECEIVED IN
REGISTRY No. 51
14 DEC1973
file
2+5
PA
НКК
HKK 5/1
13.x!!
ORWELL
TO IMMEDIATE F C O TELNO 1433 OF 11TH DECEMBER, 1973.
STERLING GUARANTEE.
AFTER A LONG DISCUSSION EXECUTIVE COUNCIL EVENTUALLY AGREED TO OUR RECOMMENDATION FOR PARTICIPATION. MEMBERS FOUND IT DIFFICULT
TO UNDERSTAND THE REQUIREMENT TO TOP UP TO MAINTAIN THE CURRENT
MARKET VALUE OF OUR STERLING ASSETS AT POUNDS 313 MILLION. BUT
EVENTUALLY THEY REALISED THAT THERE WAS NO FEASIBLE ALTERNATIVE
TO PARTICIPATION, GIVEN THE CURRENT SITUATION FOR STERLING AND THE
GGILT EDGED MARKET.
2.
WE CONFIRM THAT PURCHASES OF STERLING WILL BE MADE WHERE
NECESSARY TO CONFORM TO THE TERMS OF THE DECLARATION
AND WE SHALL BE FORWARDING THE RELEVANT ADVICES DUE UP TO THE END
OF NOVEMBER AS SOON AS POSSIBLE, DO YOU HAVE ANY PREFERENCE AS REGARDS THE TIMING OF PUBLICITY (WHICH WILL BE ALONG THE LINES ALREADY AGREED)?
3.
WE SHALL NOW BE FINALISING OUR RESPONSE TO THE CHANCELLOR'S
MESSAGE CONTAINED IN YOUR TELEGRAM 1135.
MACLEHOSE
ORWELL DISTRIBUTION
FRD
HITIOD
PS/M2 ROYLE
SECRET
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