CONFIDENTIAL

Treasury Chambers Parliament Street London SW1P 3AG

Telephone 01-930 1234 ext 460

20 February 1974

Our Ref: 2F (RMSA) 120/05

Your Ref: MF9/501/1

S J G Cambridge Esq

Foreign & Commonwealth Office

Great George Street

LONDON SW1

RECEIVED IN

TRY No. 51

20 FEB 1974

NRK S/O

LAST

REF.

REXT

RE

Dear Cambridge

>

STERLING GUARANTEES: MINOR DEPENDENCIES

This is to confirm that in the light of the arguments that have been adduced (most recently in your letter of 19 February) the Treasury will be content not to extend the 10 per cent reduction in MSPs to the minor dependencies. I agree that we need not draw the attention of the dependencies to this discrepancy in treatment (the despatches to them will obviously not mention the point) but it is of course probable that the discrepancy will be noticed sooner or later. We can then tackle cases as they arise ad hoc.

2. I am copying this letter to the recipients of yours.

Jour sincerelys

toy

walker

D A WALKER

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