www. uronjen, /INVE
CONFIDENTIAL
Foreign and Commonwealth Office
London S.W.1
22 July 1974
F.K. Jones, Esq.,
Treasury Chambers,
2F (RMSA)1 20/91/01
Parliament Street
SW1 P 3AG
Cam Th. Jones,
STERLING GUARANTEE
Thank you for your letter of today's date. I agree that your interpr
ation of the 1968 Sterling Agreement, read with the Declaration and the
modified settlement basis, is correct. The definitions of 'total
official external reserves' and of 'official sterling reserves' are
clearly distinct in the Sterling Agreement, and I can find nothing in
later documents to support the proposition that they subsequently becz a
inter-dependent or related in any way. I would not think that the
communications from the Bank of England to the Accountant-General o. "5
Kong on the matter constituted a governmental accurance that a contrary
interpretation would be followed, and there is no indication that the..
communications in any way induced Hong Kong to act to her detriment.
I am copying this letter to Miss Pestell.
Your micely,
CONFIDENTIAL
свен
Диза
(Mro.) E.M. Denza