TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 117

COVERING CONFIDENTIAL

X8B

Mr Stuart, HKIOD

STERLING AGREEMENT: HONG KONG.

1. As agreed between Mr Crowson and Mr Lewty, I attach a

draft submission which you may wish to put forward in reply to Mr Royle's enquiry set out in Mr Guest's minute to you

of 12 July. We have not consulted the Treasury or the

Bank: their reactions can be forecast with confidence, and

it would not help us in our exchanges with them on Hong Kong

to raise an idea which we ourselves would not wish to

recommend.

Gathine Pestell

CE Pestell

Financial Relations Dept.

16 July 1973

cc. (with encl)

Mr Marshall

Mr Holland

COVERING CONFIDENTIAL