TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 153

PRIORITY

CRPS 2775

CYPHER/CAT A

FM HONG KONG 2500507

CONFIDENTIAL

"11

TOP COPY

CONFIDENTIAL

TO PRIORITY F C O TELNO 953 OF 25TH AUGUST, 1973.

MY TELEGRAM NUMBER 931.

STERLING GUARANTEE AGREEMENTS.

112+113

і нико

PA

LAST

3.50

F

106

(12)

IN M.I.F.T. I AM COPYING TO YOU A LETTER ADDRESSED TO ME BY THE

SENIOR UNOFFICIAL MEMBERS OF THE EXECUTIVE AND LEGISLATIVE COUNCILS ON THE CONTINUING UNCERTAINTY ABOUT THE FUTURE, IF ANY,

OF THE STERLING GUARANTEE AGREEMENTS. IT WELL CONVEYS THE

STRENGTH OF FEELING HERE ON THIS ISSUE. IN ACKNOWLEDGING IT, I

HAVE TOLD MR. WOO THAT I WOULD BRING IT TO YOUR ATTENTION.

2,

THE LETTER CONTAINS FOUR MINOR SLIPS, VIZ

PARAGRAPH 1

AFTER THE PHRASE "THE RENEWAL OR NON-RENEWAL OF THE EXISTING

GUARANTEE'' SHOULD APPEAR THE WORDS 'SUITABLY AMENDED’’.

PARAGRAPH 3

THERE WAS A REVIEW IN A SENSE IN THE AUTUMN OF 1971. OUR

MSP WAS DROPPED FROM 99 PER CENT TO 89 PER CENT AND ALL BUT

ONE OR TWO OF THE AGREEMENTS WERE RENEWED. IT WAS THE

PROMISED MARCH 1973 REVIEW WHICH WAS NEVER HELD.

PARAGRAPH 5

IT IS NOT SO MUCH A MATTER OF SPECIAL TREATMENT BECAUSE OF OUR

SPECIAL POSITION VIS-A-VIS BRITAIN, BUT BECAUSE OF OUR

SPECIAL RELATIONSHIP WITH STERLING ( VERY LARGE BALANCES AND A HIGH MSP).

CONFIDENTIAL

/PARAGRAPH 6