TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 201

GPS 160

IMMEDIATE

CYPHER/CAT A

FM HONG KONG 100958Z

CONFIDENTIAL

CONFIDENTIAL

RECEIVED IN REGISTRY No.51

14 AUG 1973

PA

TO IMMEDIATE FCO TELNO BTC 96 OF 10 AUGUST. 1973

FOR STUART (HKIOD) FROM ASTON

STERLING

ܝ ، ܢܵ

LEF

2

13

IT IS ALREADY CLEAR FROM EDITORIAL COMMENT ON HADDON-CAVE VISIT AND REMARKS MADE TO ME BY BANKERS, JOURNALISTS AND COMMERCIALS THAT UNLESS HONG KONG IS SUBSTANTIALLY UNSHACKLED FROM STERLING

AS RESULT OF PRESENT TALKS THERE WILL BE SOME SHARP, PERHAPS BITTER,

CRITISM OF BRITAIN.

THIS WILL OF COURSE BE HEIGHTENED IF THERE IS A FURTHER RUN ON

STERLING,

CONVERSELY THERE IS RENEWED UNCERTAINTY - OR SCEPTICISM ABOUT

STERLING AMONG LOCAL BRITISH BUSINESS COMMUNITY PARTLY BECAUSE

OF HADDON-CAVE VISIT AND PARTLY BECAUSE ONE OR TWO OF THEM HAVE

TODAY BEEN ADVISED BY THEIR LONDON OFFICES NOT TO QUOTE IN STERLING.

NOT SURPRISINGLY WE ARE BEING ASKED QUESTIONS ON THIS BY

BRITISH BUSINESS REPRESENTATIVES IN PARTICULAR AND WILL BE EXPECTED

TO HAVE A LINE AT LEAST IMMEDIATELY AFTER PRESENT TALKS,

GRATEFUL THEREFORE FOR FULLEST POSSIBLE GUIDANCE EITHER FOR

USE OR PERSONAL AND CONFIDENTIAL BACKGROUND.

ASTON

FILES

FRD

HKI OD

MR WRIGHT MR WHITEHEAD SIR E NORRIS SIR D WATSON MR LARMOUR

CONFIDENTIAL

COPIES TO

MR W ST CLAIR, TREASURY