7.09
CLEARLY, TO PRESERVE THIS STABILITY I NOW GIVE YOU AN UNDERTAKING TO MAINTAIN, AFTER 24 SEPTEMBER 1973 WHEN THE EXISTING AGREEMENTS EXPIRE, THE US DOLLAR VALUE OF ELIGIBLE STERLING BALANCES AT THE AVERAGE STERLING/DOLLAR RATE IN LONDON AT NOON ON 4, 5 AND 6 SEPTEMBER 1975 VIZ DOLLARS 2.4213 EQUALS POUNDS STERLING ONE. THE GUARANTEE WILL BE SET OUT FORMALLY IN A DECLARATION WHICH WILL EXTEND TO PARTICIPANTS IN THE PRESENT AGREEMENTS WHICH IN FACT MAINTAIN EITHER, THE MINIMUM STERLING PROPORTION LAID DOWN IN THOSE AGREEMENTS OR AN ABSOLUTE AMOUNT OF STERLING FIXED ALONG THE LINES OF THE SO-CALLED QUOTE LIMITED MSP UNQUOTE SCHEME EXPLAINED IN THE SUMMER OF LAST YEAR.
4. THERE WILL BE A SIX MONTH SETTLEMENT PERIOD FOR THIS NEW GUARANTEE. ACCORDINGLY, THE UNITED KINGDOM GOVERNMENT UNDERTAKES THAT THIS DECLARATION WILL REMAIN IN EFFECT UNTIL THE END OF MARCH 1974. IT IS MY HOPE THAT IN THE COMING MONTHS THE GENERAL INTERNATIONAL MONETARY SITUATION WILL BECOME MORE SETTLED, IN ANY CASE THIS PERIOD SHOULD GIVE US ALL TIME TO TAKE STOCK OF OUR RESPECTIVE POSITIONS AND CONSIDER HOW BEST TO MEET OUR NEEDS IN
THE FUTURE.
5. BELIEVE THAT IN MAKING THIS DECLARATION AND OFFERING THIS GUARANTEE AT A HIGHER RATE THAN THE EXPIRING AGREEMENTS THE UNITED KINGDOM HAS MADE THE BEST CONTRIBUTION TOWARDS STABILITY THAT CAN BE CONTRIVED IN THE PRESENT UNSETTLED CIRCUMSTANCES. I HOPE THAT YOU FOR YOUR PART WILL FEEL ENCOURAGED TO CONTINUE MAKING YOUR CONTRIBUTION TOWARDS THE STABILITY FROM WHICH WE ALL
BENEFIT.
6. 1 HAD HOPED THAT YOU WOULD RECEIVE THIS MESSAGE IN ADVANCE OF ANNOUNCING THE NEW GUARANTEE PUBLICLY. BUT, IN THE LIGHT OF THE UNCERTAINTIES NOW DISTURBING THE FOREIGN EXCHANGE MARKETS, AND OF CURRENT SPECULATION ABOUT THE FUTURE OF THE AGREEMENTS, I CONCLUDED THAT IT WOULD BE IN ALL OUR INTERESTS TO MAKE IT CLEAR PUBLICLY TODAY THAT THE STABILISING EFFECTS OF THE STERLING AGREEMENTS WILL CONTINUE. I AM ACCORDINGLY MAKING AN IMMEDIATE ANNOUNCEMENT. I WILL BE SENDING THE TEXTS OF THE FORMAL INDIVIDUAL DECLARATIONS TO EACH OF YOU IN THE COURSE OF NEXT WEEK.
ENDS
2. CHECK: THE RATE IN PARAGRAPH 3 OF THE MESSAGE IS TWO POINT FOUR TWO ONE THREE.
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