TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 125

124 A

GR 163

IMMEDIATE

CYPHER/CAT A

FM FCO 041500Z

CONFIDENTIAL

ZORWELL/

CONFIDENTIAL

(HK)

TO IMMEDIATE GOVERNOR HONG KONG TELNO 866 OF 4 SEPTEMBER, 1973

STERLING AGREEMENT

YOUR TELNOS 953 AND 954.

1. THANK YOU FOR SENDING ME A COPY OF THE UNOFFICIAL MEMBERS'

LETTER, PLEASE CONFIRM TO THEN THAT I HAVE RECEIVED THEIR REPRESENTATIONS SENT THROUGH YOU. I AM GRATEFUL TO THEM FOR PUTTING THEIR VIEWS SO FRANKLY.

2. WE ARE ALL FACING GREAT DIFFICULTIES IN THIS PERIOD OF UNCERTAINTY AMONG WORLD CURRENCIES. HONG KONG'S PROBLEMS HAVE ALREADY BEEN EXPLAINED TO US IN DETAIL BY THE GOVERNOR AND THE FINANCIAL SECRETARY. I HOPE THE MEMBERS OF LEGISLATIVE COUNCIL WILL BELIEVE THAT WE DO UNDERSTAND THESE DIFFICULTIES. THE FINANCIAL SECRETARY HAS ALREADY BEEN ASSURED THAT THE CHANCELLOR

WILL BE SENDING A FURTHER MESSAGE AND THIS WILL BE COMING WITHIN

A FEW DAYS.

3. THE GOVERNOR WILL BE HAVING FURTHER TALKS WITH ME AND MR ROYLE

DURING THE WEEK BEGINNING 19 SEPTE BER. I HOPE THAT IT MAY BE

POSSIBLE TO MAKE FURTHER PROGRESS THEN. I ALSO UNDERSTAND THAT

MR P C WOO HIMSELF WILL DE IN LONDON DURING THAT WEEK. MR ROYLE

WOULD GREATLY VALUE THE CHANCE OF A TALK WITH HIM DURING HIS VISIT.

DOU LAS-HOME

ORWELL DISTRIBUTION

FRD

HKIOD

PS

PS/MR ROYLE

CONFIDENTIAL