TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 256

Covering Secret

Sir Murray MacLehose KCMG MBE Governor and Commander-in-Chief HONG KONG

206

Palv

2.

16 February 1973

16

16/2

12

16/4

-Goodfellow to

then PIA

As

HONG KONG GOVERNMENT PAPER

1.

Since Denis Greenhill wrote to you on 3 January, we have,

with the Treasury and the Bank of England, been giving further

consideration to your letter of 18 December.

When the latest currency crisis broke, we had just agreed

a note with the other Departments. You may feel that this crisis,

and the exchange rate adjustments which have followed, gives.

added point to the issues discussed in the note. I am therefore

sending it to you as indication of our current thinking on the

question of Hong Kong government paper. We should be grateful to

have your views on it.

3. On the wider question of the arrangements to follow after the expiry of the present Sterling Agreements in September, I

know that you are anxious that further discussion should take

place without too much delay. But, as you are aware, this is a matter which affects all countries with whom we have Agreements.

We shall, of course, be in touch with you again as soon as it has

been decided when a new round of negotiations might be initiated.

}

cc with enc: S W Payton Esq CMG

Bank of England. Mrs M E Hedley-Miller

HBC Keeble

Blind copies with enc. : Mr D G Holland, FCO

Mr AC Stuart, PCO.