TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 244

NOTHING TO BE WRITTEN IN THIS MARGIN

J

DEPARTMENT

SECURITY CLASSIFICATION PRIORITY MARKINGS (Date)..

-Kamil Bu.

reach addressee(s).

Top Secret

Secret

Confidential

"Restricted

Unclassified

PRIVACY MARKING

In Confidence

En Clair. Code Cypher

Draft Telegram to:-

GOVERNOR HONG

No.

(Date)

And to:-

Repeat to:-

Saving to:-

Distribution:-

ORWELL FRD HKIOD

Copies to:-

KONG

Despatched

Flash Immediate

Priority

Routine

}

[Sec

[Security classification"

-if any

fication]

CONFIDENTIAL

[

Privacy marking -if any

1

[Codeword-if any].

Addressed to

telegram.................

GOVERNOR HONG KONG

..(date)

repeated for information to ..........

Saving to.......

Your telegram ORWELL No 188: STERLING

1. We appreciate that, as a consequence of the

devaluation of the US dollar and your decision to

maintain the gold parity of the Hong Kong dollar,

there has been an increased loss in Hong Kong dollar

terms on your sterling reserves. This is a world

wide problem. But if a larger part of your reserves

had been in US dollars, the overall loss would of

course have been greater.

2. We fully accept that, when sterling refixes,

you will be faced with several difficult questions,

and that continued losses do not make the solution

of these problems any easier for you. On the extent

to which you can afford to maintain the present

exchange value of the Hong Kong dollar, you will

/presumably