TNAG-0126-FCO40-162-Sterling-balances-1970 — Page 73

EF 6/393/1

TEL

A.. Stewart-

Financial

Foreign

MiCarth! 1515 Hi Boilers R&PA.

Has something gone wrong w:12 the fenultimate Sentence of para 4 Policy & id Department

Commonwealth Office,

Currance Fits 13 2145, 1969.

14/5-

(2)

RECEIVED IN

REGIST

15 MAY 1969

HKK 5/6

Apparantler

Thu Jun Aut

ou. better of 1 March,

enelowed a copy of your 1.tter of 25 January

depy

t

lol you

the Chairman

of the Axchange

Sociation in long rong, about the GET AL JOBS nte you have arket out a bring their steriing balances within th @0.0 our sterling

:

procent.

been a Hong Ko... ne hos

sigur.

ines you are, Bell has diseassed with you our DevĞ I * Baigu P. 1 & 2 serango- sents workod ut in respect of the Hong Kong commercial bank belsness should not sover 96 ta with these b nka by n Hong Kong residents. @ recognise of cur ℗ Sant the arrangements a. do with the cmore.ul buck plane the cuncorn of the to ensure that the steril: within the scope on Di we would have to to b evur have to be mɛde, sterling held at th the scope of those

for residents outside oD

3.

Ivd sube?dow by

mich d

Ch 2 ch.

* 18 1

rovici

e taey

tonband within by twling held

Bedʊ only in respect of actual

•

1.8. excindin

11:

the safeguard as need by chroɛ. Hong Kong to prevent the

meats covering funds from non-toug sold, se sul10 bo very ready to combiser alsbergh before we could depart from the

f t liit of * UK 3,000 million on the

xchange Fund, we noció nood to be

were sboltel, w to

the

CIT

4.

achin

*

tight.

17? us

anh nho © Control in

ntes rangʊ –

* Bell

butory in vsition wing powers of

o revert to your letter of 29 Ja ry to the Virasa of the axeh ag Danks' scociation, we are in full reement with the un erlying privciple to excluac uno belo by Tong Kong banks which do not arise krom loved leaves of yo

for

This

schinge Control, problems of policing the ar: angemats as a whole, the difficulties of which we bell 18: 10 we do not underestis DJ. on the date 112 oi

of the

the serango- ust. gents in our letter of 29 January i have the Allowing commente.

A Und Burtance.

their

5.

hile of course the very neral discussion which we had on thi. satuer during the sterìia, nes...tions did nɔt distinguish between commercial banks in Hong

n.te th...t four offer includes the non-guthorised as we LÅN Leuthorized banks, although the non-suthorised banks have the bligation to hold eterlin, ane ure „l e-dy able to

oreign exchange

Sir J. J. Cowperthwaitə nur 3 QB,

sinenciul secretary

HON. KONG.

/ricks