TNAG-0126-FCO40-162-Sterling-balances-1970 — Page 83

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advices from most of the Hong Kong banks, we think that

thers would be advantage in making explicit their

obligation to submit advices.

9 More laporkant, in the event of implementation, and

parhapa at other times, as a check on the system, the

Bank of England will require evidence, not only from

banks in Hong Kong of the amounts of their sterling

liɛbilities to the Exchange Fund, but also from the Londer correspondence of these banks to the effect that

they hold at least the same amount of sterling. It seens

to me that you could require this information to be

provided to us under paragraph 4(5) of your letter.

10,

All this implies, of course, that sach bank must

keep proper accounting records of the sterling deposited

with it by the Government, and we assume that thi 18

being dona

195 I should be grateful if you would consider these

points and let me have your comments on them in duə

*

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