WKS 700A
ERCLAIR AND BY BAG
CO 1516552
UCLASSIFIED
PA
'Sterling'
26
1824
TO CERTAIN MISSIONS AND DEPENDENT TERRITORIES.
GUIDANCE NO 42 OF 15 MARCH 1974
RECEIVE REGISTRY N.
18:1AR 1974
OFFICIAL STERLING BALANCES
HKK 5/10.
1. THE TREASURY TODAY C 15 MARCH ) ANNOUNCED THAT H. M. GOVERNMENT
RAD DECIDED TO CONTINUE TO GUAPANTEE CERTAIN CFFICIAL STEPLING
HOLDINGS CITIL THE END OF 1974.
2.
INSTRUCTIONS FOR USE.
YOU MAY DRAW ON THIS GUIDANCE
TELEGRAM FREELY AS NECESSARY.
3. THE STERLING AGREEMENTS, ORIGINALLY NEGOTIATED IN 1968, VERE
EXPLAINED IN THE ACCOMPANYING WHITE PAPER THE BASLE FACILITY.
鲁霍
AND THE STERLING AREA ( CMND 3787). THE GUARANTEE WAS
IMPLEMENTED IN NOVEMBER 1972 WHEN THE STERLING EXCHANGE PATE
HAD FALLEN AND REMAINED FOR 30 CONSECUTIVE DAYS BELOW DLES 2.3700
,( 1 PER CENT BELOW THE FORMER DLRS 2.40 PALITY).
TOTALLING PCS 59 MILLION WERE MADE.
PAYMENTS
4. THE STERLING AGREEMENTS EXFIRED ON 24 SEPTEMBER 1973. AT
THE BEGINNING OF SEPTEMBER THE GOVERNMENT EXTENDED THE
GUARANTEE FOR A SIX MONTH PERIOD IN THE FORM OF A GOVERNMENT
DECLARATION SENT TO SIGNATORIES OF STERLING AGREEMENTS WHICH
WERE THEN IN OPERATION. THIS EXTENSION PROVED TO CE A COEFUL
STABILISING FEATURE THROUGH A PERIOD OF GREAT UNCERTAINTY IN THE
INTERNATIONAL FINANCIAL SITUATION. THE COST WILL DEFEND ON THE COURSE
OF THE STEPLINC/DOLLAR RATE UNTIL THE END OF MARCH AND CỬ THE
AMOUNT OF STERLING WHICH IS FOUND TO BE ELIGIBLE FOR GUAPMITEE,
/IT IS