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17. WHY NOT ASSURE FUTURE FINANCING BY GIVING GUARANTEES IN RESELI, OF NEW ACCRUALS?

THERE IS NO NEED TO BASE FUTURE ACCRUALS OF STERLING ON AN

ARTIFICIAL PROP OF THIS KIND, WHICH WOULD INTRODUCE QUITE

UNWARRANTABLE DISTORTION IN THE PROCESS OF CHANNELLING THE SURPLUS REVENUES OF OIL PRODUCERS.

18. DOES THE ABANDONMENT OF GUARANTEES MEAN THAT WE SHALL HAVE TO OFFER HIGHER RATES OF INTEREST (OR BE MORE RELUCTANT TO LET RATES! FALL) TO RETAIN MONEY HERE?

NO, NEITHER NECESSARILY FOLLOWS.

CALLAGHAN

ORWELL DISTRIBUTION

FRD

NEWS D

GIPD

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COPIES TO:

SIR D MITCHELL

MR BARRATT

TREASUNT

MRS HEDLEY-MILLER

MR WALKER

MR PAYTON

BANK OF ENGLAND

MR BARBER

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