TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 161

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4. ACCORDINGLY, YOUR URGENT PERMISSION IS SOUGHT TO BREACH OUR

M.S.P. IF THIS PROVES TO BE UNAVOIDABLE, HAVING REGARD TO OUR

OBLIGATION TO KEEP THE RATE WITHIN THE PERMITTED 1.M.F. BAND,

WE COULD CORRECT THE POSITION LATER ON BY SWITCHING BACK INTO HON

KONG DOLLARS BUT, AS OUR HONG KONG DOLLAR POSITION IS TWICE WHAT

IT WAS A YEAR AGO WHEN STERLING FLOATED AND WE CONSEQUENTLY HAD TO ESTABLISH A DIRECT LINK WITH THE U.S. DOLLAR, WE WOULD BE

MOST RELUCTANT TO DO THIS ALSO.

MACLEHOSE

FINANCIAL DISTRIBUTION:

FRD

KIOD NAM D

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