TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 141

CONFIDENTIAL

116

Mr Wilford

FINANCIAL ADVICE TO HONG KONG

1 Your minute to 24 August, paragraph 2.

2. Could I mention that in the event that Mr Royle is inclined to discuss with the Governor any alternative sources of advice, then it will I think be necessary to take Treasury and Bank of England views?

They are aware of, and approve of, Mr Royle's suggestion that the advice should come from a team of UK officials. They have not seen the Governor's reply in which he floats the idea of a merchant banker; nor are they aware of my own idea that perhaps the IMF could be induced to take this on.

3. For all I know, they might have cogent reasons for resisting either or both of these ideas; and they would in any case wish to know what line Mr Royle intends to take in discussion with the Governor.

4. Incidentally, since Sir D Rickett works for a sister but in some ways rival institution, he may not be well placed to help. But I don't doubt that we would inpractice be able to exercise some influence over the composition of any IMF team, and, perhaps most important, over its terms of reference.

24 August 1973

c.c.

Sir D Watson

D G Holland

Mr Marshall (with copy of Mr Wilford's minute)

Mr Cambridge

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CONFIDENTIAL

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