CONFIDENTIAL
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HKG 102/1
13 FEB 1978
Mr Jasper HKGD
INDEX
PA
N.
J.J.
Reference
MF 102/9........
7
HOTRY Action Takun
&
DEPENDENT TERRITORIES: NUMISMATIC COIN SURVEY
3
1.
Please refer to your minute of 1 February.
2. I remain unconvinced that issues of numismatic coins by UK Dependencies will ever constitutea serious threat to the UK Exchequer. It is hard to imagine concerted action being taken to force an issuing authority to redeem its numismatic coins at face value. I find it inconceivable that there should be simultaneous action in a number of Dependencies. In any case, although admittedly a very remote contingent liability does exist, HMG would only have to meet claims for reimbursement if the Dependent Territory's Government did not have sufficient funds to do so. We are now told that the total current contingent liability is around $55 million. This seems a relatively modest figure and I am surprised that it should cause the Bank "considerable concern". Nevertheless I concede that if a risk does exist it is prudent that the Bank should seek to minimise it.
3. The Bank's report is well produced - one might almost say too well produced - and contains a mine of information. Everything about the report accords with my view that a sledgehammer is being used to crack a nut! The report's conclusions run into 9 pages and the "possible course of action" stemming from those conclusions account for a further 14 pages. It seems clear that several of the suggested courses of action would be non-starters, but apparently the proposals are intended as a basis for discussion of guidelines that HMG may wish to issue.
4. I agree that it would be preferable for a summary of the report to go to OAGS.
10 February 1978
B V White
Financial Relations Department 233 4916
CODE 18 - 77
Cc:
Mr Duff, WIAD
Mr Snodgrass, PDTD Mr Collins, PCCD
Mr Hickson, SAMD
Mr Brown, SED
Mr Thompson, HKGD
Mr Beattie, DTEU, Economists Dept Mr Pickford, Legal Advisers
CONFIDENTIAL