TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 122

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Mr Marshall

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We spoke. I was not able to see Mrs Hedley-Miller until late yesterday evening.

2.

I put to herr Mr Wilford's ideas. I said that if we

could tell the Governor next week that an arrangements of this kind might be possible, it would probably make all the difference to the way Hong Kongreacted to our declaration.

on.

3. Mrs Hedley-Miller would have none of it. She said there could be no question of special treatment for Hong Kong at this stage. She added that, to some extent, Hong Kong had queered their own pitch. When Mr Haddon Cave met with Treasury officials last month, he had repeatedly made the point that Hong Kong were not asking for any special treatment.

4. Mrs Hedley-Miller did, however, admit, if grudgingly, that it may be possible to do something for Hong Kong later

As you know, Hong Kong have told us that if they do not find xxxpoяaksxaxapkabkey whatever we suggest for the post September 24 period acceptable, they will make proposals of their own. I had the impression that it is at that stage that the Treasury might be prepared to relent a little though, as Mrs Hedley-Miller insisted, the Treasury would expect Hong Kong, as part of the package, to do something about the reform of their banking system. Mirs Hedley-Miller said that none of this, however, should be passed on to the Governor next week.

wizz

6 September 1973

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Sir Duncan Watson

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Financial Relations Department

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