The Bank of England Mial who has just visited Kary has about much bittemess
almit
Silfraphed
& resecturent be has encountered. on this issue.
FE Fiqqures (C.B., CMG)
.
w Sanders, 1 B.
have on other holders of sterling if they saw
a British Colony, which was also the major holder of sterling in the world, moving
partially into other currencies. But there are
very strong feelings in Hong Kong on the subject now that devaluation has actually occurred, especially among the Chinese unofficials, Against this background we ca not possibly put to Hong Kong the additional stipulations in Saght-
ly Ecod. paragraph 3 of this letter. And in any event
n
we would question whether it would be right to
do so.
We can quite see that if Hong Kong were an independent country these extra guarantees would be justifiable. But in the case of Hong
neilte Kong they are in our view not justifiable or
necessary. The Hong Kong Government has an unblemished financial record. But Beyond that, it is also the Government of a Crown Colony, and there is no question of changing that
Invernment status. As such, it is a question whose obligations and actions are ultimately the
responsibility of HMG through the Commonwealth
Secretary.
5. In these circumstances I very much hope that you will feel able to drop the additional points
referred to
rehearsed in paragraph 3 of this letter.
Lord Shepherd, whom I have consulted, is quite clear that there could be no question of our
putting them to Hong Kong. If you feel you must insist on them, then I think the only course will
be for the whole question to be considered afresh
by Ministers.
6. I am sending D.A. Hartons 14 5 Mars IS
• •
copies of this letter to
(Treasury) and
(Board of Trade).
No comments yet.
Private notes are available after approval.