TNAG-0379-FCO40-425-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 73

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3. AS REGARDS THE GOVERNMENT'S OWN STERLING HOLDINGS, WE HAVE NOTHING TO ADD TO PARAGRAPH 6 OF OUR TELEGRAM 817 AND PARAGRAPH 6.

OF TELEGRAM 761, EXCEPT TO SAY THAT, IN ANY NECOTIATION FOR A.-

RENEWAL OF OUR STERLING GUARANTEE AGREEMENT, SEPCIAL CONSIDER- ATION MUST BE GIVEN TO HONG KONG BECAUSE OF THE HIGH M.S.P. WHICH

WE HAVE HAD TO MAINTAIN IN RELATION TO THE OTHER 2 3 MAJOR

HOLDERS OF STERLING: AND, IN VIEW OF THE POSSIBILITY OF OUR HAVING TO DIVERSIFY SUBSTANTIAL SUMS AFTER 24TH SEPTEMBER, WE NEED TO

KNOW VERY QUICKLY WHETHER A NEGOTIATION IS TO BE ENTERED INTO OR

NOT.

MACLENOSE

ORWELL DISTRIBUTION

FRO HKLOD

CARIBBEAN D WIAD

2

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