3

GRPS 150 PRIORITY

CYPHER/CAT A

FM FCO 101020Z

CONFIDENTIAL

ORWELL

CONFIDENTIAL

RECEIVED IN.

REGISTRY No. 51

19 APR 1974

HKK 5/10

TO PRIORITY HONG KONG TELNO 358 OF 10 APRIL 1974.

MIPT: STERLING GUARANTEE

(MF 9/393/1)

PA

29.10

1. FOLLOWING IS THE MODIFIED SETTLEMENT BASIS:

FOR THE PURPOSE OF CALCULATING THE BALANCES ELIGIBLE FOR QUARANTEE

ON THE LAST WORKING DAY OF MARCH 1974, OFFICIAL STERLING RESERVES

WILL RE DEEMED TO CONSIST OF THE AMOUNT OF ACTUAL HOLDINGS ON THAT

DAY OR THE AMOUNT HELD ON 28 FEBRUARY PLUS THE STERLING INTEREST

RECEIVED DURING MARCH WHICH IS MAINTAINED IN STERLING PLUS THE

STERLING WHICH, IN ACCORDANCE WITH YOUR INTERPRETATION OF THE ACCIDENTAL BREACH PROVISION, WAS PURCHASED DURING MARCH IN ORDER TO COMPLY WITH THE PROVISION, WHICHEVER IS LOWER. FOR THIS PURPOSE, VALUATION OF THE HOLDINGS ON THE LAST WORKING DAY OF FEBRUARY AND OF

ANY STERLING PRUCHASED DURING MARCH WILL BE AT CURRENT MARKET PRICES ON THE LOAST WORKING DAY OF MARCH.

CALLAGHAN

ORWELL DISTRIBUTION

FRD

HKI OD

SIR D WATSON

MR WILFORD

CONFIDENTIAL

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