TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 150

PRIORITY

GRPS 725

CYPHER/CAT A

FM HONG KONG 250109Z

CONFIDENTIAL

CONFIDENTIAL

RE VED IN RYCISTRY No. 51

20 AUC 1973

HICKSIL

TO PRIORITY F C O TELNO 954 OF 25TH AUGUST, 1973.

M.I.P.T.

TOP COPE

see 113

PA

112

3.1%

STERLING GUARANTEE AGREEMENTS.

FOLLOWING IS TEXT OF LETTER:

(DEAR SIR HUGH)

LAST

REF.

(11)

M

REF..

I AM WRITING TO YOU ON BEHALF OF THE UNOFFICIAL MEMBERS

OF THE LEGISLATIVE COUNCIL WHO ARE ALL GRAVELY DISSATISFIED WITH THE

ATTITUDE OF THE BRITISH GOVERNMENT OVER A MATTER WHICH IS OF VITAL IMPORTANCE TO THE ECONOMY OF HONG KONG, NAMELY, THE RENEWAL OR NON-RENEWAL OF THE EXISTING GUARANTEE, COVERING HONG KONG'S STERLING RESERVES.

2.

suitably ama

THE FAILURE OF THE BRITISH GOVERNMENT TO PROVIDE

INFORMATION AS TO ITS INTENTIONS EVEN AT THIS LATE STAGE

DEMONSTRATES A DEPLORABLE LACK OF CONCERN FOR THE STABILITY

AND WELFARE OF THE COLONY.

3.

CLAUS

CLAUSE 5(B) OF THE EXISTING STERLING GUARANTEE

AGREEMENT STATES THAT ''PROVISIONS OF THE AGREEMENT SHALL

BE REVIEWED WITHIN 6 MONTHS PRIOR TO THE EXPIRY OF A PERIOD

OF 3 YEARS FROM THE DATE OF ENTRY INTO FORCE OF THE AGREEMENT'

THIS MEANS THAT A REVIEW SHOULD HAVE TAKEN PLACE PRIOR TO 24TH SEPTEMBER 1971 I.E. 3 YEARS AFTER THE COMMENCEMENT OF

THE AGREEMENT AND 2 YEARS PRIOR TO ITS EXPIRY. SUCH A REVIEW, IF IT HAD BEEN CARRIED OUT AS PRESCRIBED AND IN A MANNER ACCEPTABLE TO THE HONG KONG GOVERNMENT, WOULD HAVE ENSURED THAT ARRANGEMENTS CONSIDERED ADEQUATE FROM

THE HONG KONG POINT OF VIEW WOULD REPLACE THE CURRENT

· GUARANTEE WHEN IT EXPIRES ON 24TH SEPTEMBER 1973. .

CONFIDENTIAL

14.

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