TNAG-0374-FCO40-420-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1973 — Page 26

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In Crowson

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CYPHER/CAT A

FM F C O 8615502

SECRET

ORWELL

TO IMMEDIATE GOVERNOR HONG KONG TELNO 381 OF 6 SEPTEMBER

AND TO IMMEDIATE GOVERNOR BERMUDA AND GOVERNOR BELIZE INFO ROUTINE GOVERNOR GIBRALTAR SAVING CERTAIN DEPENDENT TERRITORIES.

MIPT: STERLING AGREEMENTS.

1. FOLLOWING OF TEXT OF MESSAGE:

BEGINS

1. WHEN I WROTE TO YOU AND OTHER SIGNATORIES OF THE STERLING

- AGREEMENTS IN JULY THE INTERNATIONAL MONETARY SITUATION GAVE

US A PARTICULARLY UNCERTAIN BACKGROUND AGAINST WHICH TO TAKE

FIRM DECISIONS ABOUT THE STERLING AGREEMENTS COVERING A SUBSTANTIAL PERIOD AHEAD. I WAS NOT THEREFORE ABLE TO PROPOSE WHAT OUR

ARRANGEMENTS IN THE LONGER TERM SHOULD BE, BUT I PROMISED TO

WRITE TO YOU AGAIN ABOUT ARRANGEMENTS TO COVER THE OFFICIAL

STERLING BALANCES IN THE PERIOD IMMEDIATELY AHEAD.

2. WE HAVE ALL BEEN ABLE TO CONSIDER THE POSITION FURTHER

SINCE THEN, BUT WE STILL FACE A PERIOD OF CONTINUING UNCERTAINTY

IN INTERNATIONAL MONETARY AFFAIRS. AGAINST THIS PROSPECT, I

CANNOT SEE THAT IT WOULD BE SENSIBLE FOR ANY OF US TO TRY TO

WORK OUT SUBSTANTIVE ARRANGEMENTS FOR NEW STERLING AGREEMENTS

TO OPERATE IN CIRCUMSTANCES OF WHICH WE CANNOT FEEL SURE. ON

THE OTHER HAND, I AM IMPRESSED, AND I THINK YOU MAY SHARE THIS VIEW, BY THE VALUE FOR ALL OF US, AMIDST SO MAY UNCERTAINTIES, OF THE ELEMENT OF STABILITY WHICH THE EXISTING AGREEMENTS HAVE

GIVEN.

3. I BELIEVE THAT WE HAVE A COMMON INTEREST IN PRESERVING THIS

ELEMENT OF STABILITY UNTIL WE CAN SEE THE WAY AHEAD MORE CLEARLY. TO PRESERVE THIS STABILITY I NOW CAME

VAU