IMMEDIATE
CYPHER/CAT A
GPS 230
FM FCO 231650Z
.R.
RE:
CONFIDENTIAL
PA
(MF 9/548/1)
CONFIDENTIAL
DESKBY 240180Z
24 JAN1974
HKK 5/10
TO IMMEDIATE TOKYO TELNO 80 OF 23 JANUARY, 1974.
FOLLOWING PERSONAL FOR PHR MARSHALL,
NOF YOUR TELNO 105: STERLING.
LAST
RET
#EXT
38
REF
Stacking
প
2
214.5
1. THANK YOU FOR YOUR TELEGRAM. BARRATT HAS TOLD HADDON-CAVE OF
YOUR MISSION IN A TELEGRAM WHICH IS BEING COPIED TO YOU.
2. THE SUBSTANCE OF PARAS 1 AND 2 OF MY TELNO 75 WAS FOR YOUR
BACKGROUND INFORMATION ONLY, WE NOTE WHAT YOU SAY, BUT THE TREASURY WOULD NOT (NOT) WANT TO PASS ANY OF THIS TO HADDON-CAVE
AT THIS STAGE, THE PRESENT OBJECT IS TO GET AN INDEPENDENT INDICATION
OF HONG KONG'S OWN VIEWS. IF YOU ARE ASKED WHAT PROGRESS HAS BEEN MADE IN ANY SIMILAR INITIATIVE WITH OTHER HOLDERS, THE TREASURY
SUGGEST YOU SIMPLY SAY THAT YOU ARE NOT INFORMED ON THIS.
3. THE TREASURY RATHER DOUBT WHETHER THE OUTCOME OF THE ROME
DISCUSSIONS OR THE FLOATING OF THE FRENCH FRANC WOULD BE VERY RELEVANT FOR HADDON-CAVE'S RESPONSE. THERE IS NOT IN FACT MUCH TO ADD ON EITHER TO WHAT HADDON-CAVE WILL ALREADY HAVE SEEN IN THE
PRESS. BUT GUIDANCE ON THE ROME DISCUSSIONS HAS BEEN SENT TO THE
TOKYO EMBASSY AND THIS COULD BE DRAWN UPON WHEN YOU SEE HADDON-CAVE. SPECIFICALLY ON RESERVE CURRENCY BALANCES, THE PROSPECT FOR A MULTILATERAL SOLUTION (FOR EXAMPLE THROUGH AN SDR SUBSTITUTION FACILITY IN THE IMF) HAS RECEDED EVEN FURTHER INTO THE DISTANCE
AS A RESULT OF THE ROME DICUSSIONS.
4. WE HAVE ONLY TODAY BECOME AWARE THAT FRIDAY IS A PUBLIC HOLIDAY
IN HONG KONG, SO IT MIGHT BE PRUDENT FOR YOU TO TELEPHONE HADDON-CAVE
TO ENSURE THAT HE WILL BE AVAILABLE.
DOUGLAS-HOME
FILES
FRD
HK100
MR WILFORD
COPIES TO:
MR BARRATT HM TREASURY MR FENTON BANK OF ENGLAND
CONFIDENTIAL