TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 122

CONFIDENTIAL

WE OF COURSE, ARE DOING OUR OWN CONTINGENCY PLANNING IN CASE THE STERLING GUARANTEE AGREEMENT IS NOT RENEWED (OR IS NOT RENEWED IN A SUITABLE FORM) BUT, AT THIS TIME, I WOULD NOT LIKE TO BE DRAWN DURTHER ON WHAT WE HAVE IN MIND TO SAFEGUARD OUR ESSENTIAL

INTERESTS. I CAN ONLY ASK HONOURABLE MEMBERS TO ACCEPT MY EARNEST

ASSURANCE THAT THE GOVERNMENT IS WELL AWARE OF THE GREAT

IMPORTANCE OF THESE ISSUES AND IS IN CLOSE TOUCH WITH OUR BANKERS.''

2. I SHOULD BE GRATEFUL FOR YOUR COMMENTS, IF ANY, BY TUESDAY (17TH) MORNING HONG KONG TIME.

MACLEHOSE

ORWELL DISTRIBUTION

FRD

HKI OD

PRIVATE SECRETARY

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CONFIDENTIAL