TNAG-0374-FCO40-420-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1973 — Page 157

ALENDED DISTRIBUTION: 28/8/75.

"PHER/CAT A

FM HONG KONG 250100Z

CONFIDENTIAL

[ORWELL]

TO PRIORITY FCO TELNO 954 OF 25TH ́AUGUST, 1973.

M.I.P.T.

STERLING GUARANTEE AGREEMENTS.

FOLLOWING IS TEXT OF LETTER

(DEAR SIR HUGH)

1

I AM WRITING TO YOU ON BEHALF OF THE UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL WHO ARE ALL GRAVELY DISSATISFIED WITH THE

ATTITUDE OF THE BRITISH GOVERNMENT OVER A MATTER WHICH IS OF

VITAL IMPORTANCE TO THE ECONOMY OF HONG KONG, NAMELY, THE RENEWAL OR NON-RENEWAL OF THE EXISTING GUARANTEE COVERING HONG.

KONG'S STERLING RESERVES.

2. THE FAILURE OF THE BRITISH GOVERNMENT TO PROVIDE INFORMATION AS TO ITS INTENTIONS EVEN AT THIS LATE STAGE

DEMONSTRATES A DEPLORABLE LACK OF CONCERN FOR THE STABILITY

AND WELFARE OF THE COLONY.

3. CLAUSE 5(B) OF THE EXISTING STERLING GUARANTEE AGREEMENT STATES THAT PROVISIONS OF THE AGREEMENT SHALL

BE REVIEWED WITHIN 6 MONTHS PRIOR TO THE EXPIRY OF A PERIOD

OF 3 YEARS FROM THE DATE OF ENTRY INTO FORCE OF THE AGREEMENT’ THIS MEANS THAT A REVIEW SHOULD HAVE TAKEN PLACE PRIOR TO 24TH SEPTEMBER 1971 1.E. 3 YEARS AFTER THE COMMENCEMENT OF

THE AGREEMENT AND 2 YEARS PRIOR TO ITS EXPIRY, SUCH A REVIEW, IF IT HAD BEEN CARRIED OUT AS PRESCRIBED AND IN A MANNER ACCEPTABLE TO THE HONG KONG GOVERNMENT, WOULD HAVE ENSURED THAT ARRANGEMENTS CONSIDERED ADEQUATE FROM THE HONG KONG POINT OF VIEW WOULD REPLACE THE CURRENT GUARANTEE WHEN IT EXPIRES ON 24TH SEPTEMBER 1973.

CONFIDENTIAL