TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 134

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THE GUARDIAN

cutting dated

11 0 JUL 10

19

Cha

Sufin

HK

Hongkong talks

Talks took place at the Treasury yesterday on the future of the £100 millions sterling balances held in Lendon by Hongkong.

A Treasury official would not comment on a report by the Far Eastern Economic Review, which said that a high-handed response to Hongkong's efforts to gain a renewal of the Basle guarantees protecting it against the losses caused by sterling devaluation would trigger off social unrest in the colony and cause "bankruptcy" to Britain.

A spokesman said that no decisions were made in the meeting.

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