TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 140

t.

TRD

Department

Drafted by

(Block Capitals)

D I Lewty

TELEGRAM

G 206

Tel. Extn.

FOR

COMMS. DEPT.

(Date)

SYNONIKA KAN¶əə««««ob«t26+02

USE

Despatched

(Time)

PREAMBLE

(Time of Origin)

(Security Class.)..

(Codeword)

ORWELL

TO...

GOVERNOR HONG KONG

(procedence)

AND TO (precedence/post)

AND SAVING TO

REPEATED TO (for info)

SAVING TO (for info)

Distribution:-

Oxwell

WRD HKIOD

Copies to:-

Z

SBCKET

Precedence

INMEDIATE

DESKBY

Z (G.M.T.)

(Restrictive Prefix)... (Caveat/ Privacy Marking)

(Deskby)

****

..................................................Z.

Tel. No.

of

(post)

01662401-ESEDIAKAN PS01

(READYANDANNANdət sannesäer9502-1414925YSULCAIN

...Z

[TEXT] Personal for Copener av Marion - Covi.

YOUR TELEGRAMS 728 & 741.

STERLING AGREEMENTS,

The present disturbed situation in the foreign exchange markets is having unpleasant consequences for all of us.

The maintenance of the MSP is however an essential part of

all Sterling Agreements, and the guarantee is dependent

upon it.

A breach of MSP therefore has, legally, the

effect of terminating the guarantee. We regret, therefore, that it is not possible for us to agree to the request in

your telegram 728.

2.

We are, however, prepared in the special circumstances not to regard the minor breach reported in your telegram

741 as a formal breach of the Agreement, on the understanding that the proportion of sterling in your total reserves

/falls

$

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