CONFIDENTIAL
the beginning of September HMG's offer to extend the guarantee
unilaterally for six months. In order to allow Hong Kong to
participate, given that the commercial banks had already
diversified, various modifications had to be agreed. The UK has
gone a very long way to meet Hong Kong's special interests and
wishes.
ہے
5. There have been hard words in the Hong Kong press to the
effect that Hong Kong has been forced to hold a disproportionate
amount of sterling the implication being that Hong Kong was
making sacrifices for the benefit of the UK. This allegation,
particularly current at the end of the summer, is quite unfounded.
Taking account of the high interest payable on sterling holdings
and guarantee payments, Hong Kong has done better in sterling
than if it had converted into US dollars in 1968. As regards
parity of treatment, Hong Kong has been treated at least equally
with other holders and, on the basis of the very accommodating
stand that we have taken, is probably doing better than most
under the present arrangement. For this reason, past friction
on this subject appears to have died down.
CONFIDENTIAL
Page 30Page 31
No comments yet.
Private notes are available after approval.