CONFIDENTIAL
+
97
CYPHER/CAT A
ROUTINE HONG KONG
TELEGRAM NUMBER EXCED 152
TO EXPORT CREDITS GUARANTEE DEPARTMENT
15 AUGUST 1969.
CONFIDENTIAL ADDRESSED BOT TELEGRAM EXCED 152 OF 15 AUGUST FROM
BTC HONG KONG.
YOUR 13712.
HANNAM'S LETTER 6/10/1 OF 17 JULY 1968 TO WILD SETS OUT POSITION
REGARDING EXCHANGE CONTROL.
ALTHOUGH EXCHANGE CONTROL APPROVAL WOULD PROBABLY UNDERLINE NEXT
WORD NOT BE GIVEN IF PAYMENT WERE TO BE MADE THROUGH NORMAL BANKING
CHANNELS, IT SHOULD BE BORNE IN MIND THAT ANY FIRM CAN LEGALLY
BUY U.S. DOLLARS ON THE OPEN MARKET IN HONG KONG AND PROVIDED ENOUGH
DOLLARS ARE AVAILABLE AT ANY GIVEN TIME, PAYMENT CAN EASILY AND
LEGALLY BE MADE BY THIS METHOD.
WE HAVE NOT APPROACHED THE HONG KONG FIRM ABOUT THIS MATTER BUT
ENQUIRIES INDICATE THAT THEY HAVE HITHERTO PAID FOR EQUIPMENT BOUGHT
FROM UNITED KINGDOM IN STERLING.
IN REGARD TO YOUR PARAGRAPH 3, WE SUSPECT THE PROPOSAL TO PAY IN
U.S. DOLLARS HAS BEEN MADE FROM THE UNITED KINGDOM END IN ORDER TO
FIX EXCHANGE AT PRESENT RATES AS HEDGE AGAINST POSSIBLE DEVALUATION
DURING THE PERIOD IN WHICH PAYMENTS FALL DUE. IT WOULD NOT, OF
COURSE, BENEFIT THE HONG KONG FIRM WHO WOULD STAND TO GAIN BY
STERLING DEVALUATION IF PAYMENT WERE TO BE MADE IN STERLING.
ACKW
MR. BLACKWELL
PBplause.
of 2/8/69.
EXCED DISTRIBUTION
H.K.D.
WX. PRO. D.
RECEIVED IN
REGISTRY No.51
19 AUG 1969
THICK HACE O
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