TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 194

GRPS 660

PRIORITY

EN CLAIR

FM HONG KONG 120125Z

UNCLASSIFIED

RECKVEC IN

RK TRY Ne. €1 TRAUG 973

HKK 5/1

TO PRIORITY F C O TELNO 98 OF 12TH AUGUST, 1973.

FOR STUART (HKIOD) FROM ASTON.

STERLING

1

91

TOP COPY

PA

IN CASE IT HAS NOT YET REACHED YOU FOLLOWING ARE EXTRACTS FROM ARTICLE UNDER HEADLINE WAGGING THE BULLDOG'' IN CURRENT

DISTRIBUTED 11TH AUGUST) FAR EASTERN ECONOMIC REVIEW. THEY TYPIFY PRESS APPROACH GENERALLY.

'SELFISHLY AND SHORT-SIGHTEDLY, LONDON LAST YEAR ABOLISHED THE STERLING AREA. NOW THE CHICKENS ARE COMING HOME TO ROOST.

2

་༡པས་

FOR THE PREVIOUS 20 YEARS BRITAIN LIVED BEYOND ITS MEANS BY FORCING

OTHER NATIONS TO SHOULDER A SUBSTANTIAL PORTION OF ITS FOREIGN

DEBTS.

TWO LITTLE TAILS ARE AT PRESENT IN LONDON BOASTING. ENOUGH MONETARY MUSCLE TO WAG A SICKLY BRITISH BULLDOG. SIR MURRAY

MACLEHOSE, HONG KONG'S GOVERNOR HAS BEEN FORCED BY LONDON'S -

FAILURE TO RESPOND BEFORE NOW TO INTERRUPT A WELL EARNED LEAVE

FOR A CONFRONTATION WITH THE TREASURY. AND FINANCIAL SECRETARY

PHILIP HADDON-CAVE HAS JOINED HIM FROM HONG KONG,..

.....IN A TIME OF MONETARY CONFUSION, LONDON SIMPLY COULD NOT

DARE TO ALLOW HONG KONG TO SHIFT ITS ASSETS OUT OF LONDON.....

.....IF THE WHOLE AMOUNT WERE SOLD OFF WITHIN THE NEXT FEW WEEKS, THE MOTHER COUNTRY WOULD BE HUMILITATINGLY BANKRUPTED AT THE HANDS

OF ITS TINY COLONY.....

"'.....PREVIOUS EXPERIENCE OF LONDON'S TACTICS LEADS HONG KONG TO

EXPECT THAT THE BIG STICK WOULD BE WAVED AT ITS REPRESENTATIVES IN LONDON.............

/ "....LONDON