るみ)
GRS 240
IMMEDIATE
CYPHER/CATA
SECRET
RECEIVED IN REGISTRY r. 51
1- APK 1974
F. F.C.O.
20173@Z
HKK 5.0.
PA
2
3/15
SECRET
TO IMMEDIATE HONG KONG TEL NO 317 OF 28 MARCH 74.
PERSONAL FOR GOVERNOR FROM YOUDE
31
OUR TEL NO 314: STERLING GUARANTEE.
LAST
る
30
REF.
REXT
30
*
1. YOU WILL HAVE SEEN THIS REPLY FROM THE TREASURY TO HADDON-CAVE'S
TELEGRAM NO 375. THERE DOES SEEM TO HAVE BEEN A GENUINE MISUNDER-
STANDING ABOUT THE INTERPRETATION OF THE INTERIM GUARANTEE. THE
TREASURY REGRET THIS, AS WE DO. BUT THEY HAVE HAD TO REPLY WITH SOME FORMALITY BECAUSE, AS THE ACCOUNTING DEPARTMENT, GIVEN THAT
THEIR ADVICE IS THAT HONG KONG'S INTERPRETATION OF THE AGREEMENT
IS, NOT CORRECT, THEY HAVE TO BE ABLE TO JUSTIFY THE PROPOSED
PAYMENTS. THIS MAKES IT DIFFICULT FOR THEM TO TAKE NO ACCOUNT OF
WHAT HAS HAPPENED.
2. NEVERTHELESS THE LATEST TREASURY OFFER TO PAY ON YOUR FEBRUARY
STERLING HOLDINGS, AS TOPPED UP IN MARCH, PLUS ACCRUALS OF INTEREST,
SHOULD IN EFFECT COVER EVERYTHING EXCEPT THE ADDITIONAL STERLING
WHICH HONG KONG MIGHT HAVE HAD TO BUY TO MAINTAIN THE VALUE OF YOUR
GILTS THIS MONTH. MOREOVER IF, AS HADDON-CAVE SUGGESTS IN HIS TELEGRAM, THE SUM INVOLVED IS ABOUT 5 MILLION, THEN THE REDUCTION
IN THE GUARANTEE PAYMENT WOULD BEAR A REASONABLE RELATION TO THE
SHORTFALL IN YOUR AVERAGE HOLDING OF STERLING BELOW HSP THROUGHOUT
THE PERIOD, WHICH HAS RESULTED FROM YOUR POST HOC ARRANGEMENTS FOR
TOPPING UP.
SECRET
/ 3.