TREASURY:
MR FR BARRATT
MR W L ST CLAIR
MR D A WALKER
MRS HEDLEY-MILIER
BANK OF ENGLAND:
(SEND DIRECT)
MR R P FENTON
MR SW PAYTON
•
MR RE BARBER
FM HONG KONG 27040OZ
SECRET
ORWELL
1440x
RECEIVED IN REGISTRY No. 51
1- APR 1974
HKK 5710.
TO IMMEDIATE F C O TELEGRAM NUMBER 375 OF 27 MARCH.
FOR BARRATT (TREASURY) FROM HADDON-CAVE.
PRESENT STERLING GUARANTEE.
YOUR TELEGRAM ORWELL 309.
LAST
REF.
123
NEXT
REF
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43 41
39
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PARIK
197
UNTIL WE HAVE RECEIVED AND STUDIED THE TECHNICAL DOCUMENTS PROMISED IN PARAGRAPH 9 OF THE CHANCELLOR'S MESSAGE IN TELEGRAM 274, WE CANNOT COME TO A VIEW ON THE NEW GUARANTEE OFFER COVERING THE REMAINDER OF THE CALENDAR YEAR, BUT WE SHALL DO SO AS QUICKLY AS
POSSIBLE.
2. AS REGARDS OUR TOPPING UP OBLIGATION DURING (REPEAT DURING) THE LIFE OF THE PRESENT CUARANTEE, I DO REALLY FAIL TO SEE HOW THERE
CAN BE ANY MISUNDERSTANDING. IT SEEMS ABUNDANTLY CLEAR FROM PARAGRAPH 4 OF OUR TELEGRAM 1317 OF 17 NOVEMBER 1973 THAT THE DIFFICULTY WE ENVISAGED WOULD BE A CONTINUING ONE IF THE GILT EDGED MARKET CONTINUALLY WEAKENED. NOTHING WAS SAID IN YOUR
(214) HKK)
1973)
› TELEGRAM NO 1299 OF 26 NOVEMBER 1973 WHICH SUGGESTED THAT **A PURELY
ACCIDENTAL BREACH AT THE END OF ANY ONE MONTH WILL BE OVERLOOKED PROVIDED THERE IS NO BREACH AT THE END OF THE FOLLOWING MONTH'' (PARAGRAPH 1 OF YOUR TELEGRAM UNDER REFERENCE). ON THE CONTRARY,
THE USE OF SUCH WORDS AS OCCASIONS'', ''CHANGES' AND 'ADVICES" IN PARAGRAPH 2 OF YOUR TELEGRAM 1209 OF 26 NOVEMBER 1973 SURELY
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