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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