GP3340
TUMEDIATE
CLAIR
C
FM FCO 301900 Z
UNCLASSIFIED
ORVELL
8303
TOP COR
RECEIVED IN REGISTRY No.47 31 DEC 1974
MF9/548/1
1974 TO IMMEDIATE WASHINGTON TELNO 2642 OF 30 DECEMBER/AND TO EEC POSTS TOKYO CANBERRA WELLINGTON LAGOS HONG KONG KUWAIT ABU DHABI JEDDA
BAHRAIN DOHA MUSCAT TEHRAN DUBAI CAIRO BEIRUT TRIPOLI.
MIPT: STERLING GUARANTEES.
GUARANTEES
1. HOW MUCH HAS THE LATEST GUARANTEE COST?
NO PAYMENTS HAVE BECOME DUE UNDER THE GUARANTEE WHICH HAS NOW
EXPIRED, UNDER ITS TERMS COMPENSATION WOULD HAVE BECOME PAYABLE
IF THE AVERAGE EFFECTIVE DEPRECIATION OF STERLING FROM SMITHSONIAN
PARITIES IN THE NINE-MONTH PERIOD OF THE GUARANTEE HAD BEEN GREATER
THAN 19.35%.
2. WHAT HAS BEEN THE AVERAGE EFFECTIVE DEPRECIATION DURING THE PERIOD
OF THE LATEST GUARANTEE?
ABOUT 13.1 PERCENT (PRECISE FIGURE DEPENDS EN RATE FOR STERLING UP TO THE LONDON CLOSE ON 31ST DECEMBER.)
3. HOW MUCH HAVE PREVIOUS GUARANTEES COST?
COMPENSATION OF SOME £59M WAS PAID IN RESPECT OF THE STERLING
AGREEMENTS WHICH EXPIRED IN SEPTEMBER 1973. COMPENSATION PAYABLE
WIDER THE SIX-MONTI UNILATERAL GUARANTEE FOR THE PERIOD TO MARCH
1974 HAS AMOUNTED TO SOME £77M.
4. HOW MUCH STERLING HAS BEEN GUARANTEED?
ACCORDING TO LATEST ESTIMATES THE GUARANTEE HAS EXTENDED TO ABOUT
A HALF OF THE OFFICIAL STERLING RESERVES OF PARTICIPATING COUNTRIES:
THIS IS ABOUT ONE THIRD OF TOTAL OFFICIAL STERLING HOLDINGS OR ABOUT ONE-FIFTH OF THE TOTAL OF OFFICIAL PLUS PRIVATE HOLDINGS. THE
AMOUNT ELIGIBLE FOR COMPENSATION WOULD HAVE BEEN NOT MORE THAN
$1,50AM, THOUGH THE PRECISE FIGURE WOULD HAVE DEPENDED IN PART ON
HOLDINGS ON 31 DECEMBER.
5. WHICH COUNTRIES ARE AFFECTED?
PROVIDED THAT ITS CONDITIONS WERE MET, THE PRESENT GUARANTEE HAS BEG!
AVAILABLE TO ALL COUNTRIES WHICH PARTICIPATED IN THE PREVIOUS
ARRANGEMENT.
}
/ 6. WHY HAVE
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