TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 123

PRIME MINISTER

PM/73/49

Sterling Agreements

Distribution-

46

Lady Tweedsmuk B PS/ Marshall MR Holland

MR. Wright / Robinson

EIQ.

$

FRD TO ENTER

13 JUL 1973

MF9/548/1

It is not for me to express an opinion on whether

or not we should have further Sterling Agreements to replace those negotiated in 1968 and which expire shortly. But I see some political and tactical difficulties about the two options described in paragraph 15 of the Chancellor's

minute of 10 July.

2.

As regards the first of these, it may well be tit the signatories could be brought to accept that, again.t the new international monetary background, we see no pl

But, given our oft-repeated for further Agreements. assurances that we shall consult them on these questions, we should have to be very careful indeed about how we brought them to accept such a conclusion. would not suffice merely to explain to them that this v our view. We must avoid any suggestion of a fait acco

3.

It certainly

As regards the alternative possibility of seeking new Agreements, not immediately but after we have rejoire i the "snake", I wonder how far other Governments would really be interested in discussions which would inevitably be to a considerable extent hypothetical.

/When we soundeu