TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 189

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Appendix. A

ponix B

SECRET

seeking to maintain a complicated and at time administratively tiresome network of Agreements.

summer.

7. As regards ii., we put certain proposals to the Sterling Agreement countries at the time of the floating of sterling last

(see the text of the Chancellor's message at Appendix A). There seemed to be a general feeling that it would be better to rostpone definite consideration of these proposals until after sterling had been refixed. This was recognised in a further message from the Chancellor of the Exchequer to the Sterling Agreement countries (text et Apendix B).

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Thing

Kay.

8. As a variant to renegotiation with all the Sterling Agreement countries, we could think in terms of negotiations with half a dozen of the largest holders who between them account for a sub- stantial proportion of the whole and then offer an agreement to the others based upon what we had settled bilaterally with the largest holders. Negotiations would be likely to be tough and long.

9. The attraction of iii. would not be that it was inherently preferable to i. or ii., but that, in the light of the difficul- ties of following courses i. and ii., it might prove to be the only possible course to adopt. (There would also be the advantage from the point of view of our relations with our partners in the Community if we vere to seek to postpone any decision about the Sterling Agreements until after our discussions about further moves towards economic and monetary union had been advanced, in the light of reports to be produced by the Commission by 30 June.) There is, of course, no certainty that the holders would agree to this suggestion.

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10. In view of the complexity of the subject, it may be useful to departments to have an opportunity of discussing it and of

Mr Keeble considering the problems of individual countries.

has agreed to hold a meeting of those concerned at 11.30 am on Friday, 18 May in Room 67G in Great George Street (the office

I should be grateful if formerly occupied by Mr Bottomley). you would arrange to attend or to be represented at this meeting An object of the meeting unless you think this is unnecessary. would be, in the light of discussion, to consider the question of seeking the views of our Missions abroad.

16 May 1973

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PS to PUS

Mr Aust

Mr Wright

Mr Parsons

Mr Keeble

Mr Holland

(ATD)

вытрим

P H R Marshall

Financial Relations Department