TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 70

NOTHING TO BE WRITTEN IN THIS MARGIN

Wl

Date and time (G.M.T.) telegram should

reach addressee(s)

Registry No.

DEPARTMENT

HW

HALOD

SECURITY CLASSIFICATION

Top Secret

Secret

Confidential

Restricted

Unclassified

PRIORITY MARKINGS

(Date)

Flash Immediate Priority

"Koutine

}

***

Despatched

Cupseded

PRIVACY MARKING

En Clair. Code

Cypher

[Sec

In Confidence

Security classification -if any

CONFIDENTIAL

[

Privacy marking -if any

]

[Codeword-if any]

ORWELK

Addressed to

GOVERNOR HONG KONG.

telegram No.

..(date)

1 AUGUST 1973

Draft Telegram to:-

No.

(Date)

And to:-

Repeat to:-

Saving to:-

Distribution:-

Copies to:-

And to

repeated for information to

Saving to...

1.

MY TELEGRAM NO 726 AND YOUR 817: STERLING AGREEMENT

You will now have seen the Chancellor's message

in my telegram No 742 and will have realised that it

can not now be assumed that no arrangements will be

made in relation to official sterling balances after

24 September.

2. We assume that paragraph 5 of your telegram

refers to action which might be taken after

24 September/were there to be no arrangements about

the official sterling balances.

3. We could not of course endorse

nor would you

expect us//to - any diversification of your own

official/reserves or your encouragement to the

cial

erve

commercial banks to diversify out of sterling.

W

We

trust that any action on these lines ould only

arise after a balanced consideration of the interests

/of

CONFIDENTIAL