TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 100

REPRESENTATIVES TO DO SOME FORCEFUL TALKING BACK IN THE COMING

WEEK AND 'PRESS WITH DETERMINATION' DEMANDS FOR HONG KONG TO DECIDE

FOR ITSELF HOW TO DISPOSE OF ITS HOLDINGS AND TO BE GIVEN GREATER

MEASURE OF PROTECTION FOR THAT PROPORTION OF RESERVES THAT ARE

RETAINED IN STERLING.

1...

'STAR' IN EDITORIAL UNDER HEADLINE 'TRICKY TONY' QUESTIONS

WHETHER HADDON-CAVE IS RIGHT IN DENYING THAT EXTENSION DECISION

WAS 'FAIT ACCOMPLI' OR IN POSITION. EDITORIAL SUGGESTS THAT

DELAYING DECISION UNTIL HADDON-CAVE WAS ON ROUTE BACK TO HONG KONG

WAS A DELIBERATE TRICK TO BRUSH OFF HONG KONG'S DEMANDS. IT

WOUNDERS WHERE HONG KONG COULD GET IN ARGUING BACK IF NEW ZEALAND

AND OTHER STERLING HOLDERS ACCEPT THE BRITISH DECISION AND ALLEGES

THAT IN ORDER TO 'SAVE THEIR OWN POLITICAL NECKS AND THEIR STERLING ASSETS' THESE OTHER HOLDERS ARE 'JUST AS LIKELY AS BRITAIN TO WANT

TO USE HONG KONG AS A PROP FOR BRITAIN',

*

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CHINA MAIL IN FRONT PAGE STORY SURMISES THAT THERE IS A SERIOUS RIFT DEVELOPING BETWEEN HADDON-CAVE AND BRITISH TREASURY OFFICIALS.

ATTEMPTING TO READ BETWEEN THE LINES OF HADDON-CAVES STATEMENT AND RECENT DEVELOPMENTS IT CONCLUDES THAT HE HAS AGAIN BEEN SNUBBED'.

REPORT CONCLUDES THAT THE 'CHRONIC STATE OF BRITAINS ECONOMY

IS OF LITTLE CONSOLATION TO HONG KONG FACING SERIOUS LOSSES OF

RESERVES BECAUSE OF WEAKNESS OF STERLING'.

2.

/FOUR OUT

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