SOUTH CHINA MORNING AUGUST
13rt 73
1
London advice
on sterling
next month
BY BRUCE MAXWELL
The Hongkong Government is expecting official word on the future of our vital sterling reserves during the second week in September.
The Financial Secretary, Mr Philip Haddon-Cave, told an airport press conference on his return from London last night that Britain would send messages to other holders of sterling at the same time.
During last Thursday's monetary summit talk, Mr. Haddon-Cave said, the Governor, the Accountant General and himself had asked the British Minister of State for the Treasury, Mr John Nott, what the London Government's view
was on the future of Hongkong's sterling balances.
"Mr Nott told us that a final and firm decision on what to suggest to sterling arca countries had not yet been taken.” Mr Haddon-Cave said.
**But he did say the Chancellor of the Exchequer Mr Anthony Barber, would be sending us, and other holders of sterling. an important and presumably definitive "message during the second week in September.
"Mr Nott was unable to tell us what the definitive message would say as the Chancellor has yet to approve it...
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Mr Haddon-Cave, said he and the Governor, together with the Accountant. General, Mr D.W.A. Blye, and the
MR HADDON-CAVE
reserves without endangering the position of sterling.
"The British side gave us a very careful hearing and showed interest in what we had to say.
"I do not know now if there will be any further direct contact before the Chancellor's message in September.”
Mr Haddon-Cave said he was, however, returning to London in a fortnight on another matter and the reserve question could be discussed again.
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In the meantime he said, the Hongkong public should be assured that the Government
Banking Commissioner, Mrhad undertaken contingency
J.C. Paterson, had pressed "very hard indeed" the importance of maintaining the 'exchange value of Hongkong's
sterling reserves.
These reserves - worth some *£750 million → were absolutely vital to Hongkong's stability, given the external nature of our trade
Ham kong's case--and - been pressed with all the force at our command,” he said.
Mi
"Naturally, we have our own idea for the provision of adequate'safeguard for our
planning.
was
Onequivocally, he stated that Maintenance of the value of Hongkong's reserves fundamental to the Colony, and that this was also a fundamental cornerstone of Government policy, w gła
Answering questions on "Britain's attitude, he said: "1. think Her Majesty's Government is aware
country holding '90 per cent of its reserves in one currency is in a very unusual situation."
(See Editorial Page 2)
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