DRAFT TELEGRAM TO HONG KONG

PRESENT STERLING GUARANTEE

PA

41

-3/E

이프

LASI

30

REF.

NEXT

REF

Your telno 375 to Barratt.

2.

grealting

We regret that there has been misunderstanding

on the accidental breach provision. But we do not

departe kalim

thrak

but

Sed in

have much to add to para 2 of our telno 309 of

March. The only provision for accidental breaches

is that set out in para 2 of our telno 1209 of

26 November 1973. This is the same provision as

that extended to many other participants in the

present arrangement, and we are aware of no other

i cases in which it has led to misunderstanding or

A

difficulty.

3. As to the position at the end of this month, we

would be prepared to compensate on the basis set out

in para 3 of our telno 309 but, in the light of your

telno 375, with an adjustment to take account of

interest accruals during March. We take it that in

calculating the amount of sterling which you purchased

in March under your interpretation of the accidental

breach provision, you will have taken account of

1

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