TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 202

LANN UKP 794

EPAS 15

1557 : ASSETS:

(=MEARGOED FOR AUTOMATIC RELEASE 0100 GMT FRIDAY AUJ. 10) HONG KONG. AUG. 10, REUTER -- BRITAIN WOULD BE "HUMILIATINGLY BANKRUPTED" BY HONG KONG IF IT WERE TO SHIFT ITS ASSETS TOTALLING MORE THAN 700 MILLION STERLING OUT OF LONDON WITHIN THE NEXT FEW WEEKS, THE FAR EASTERN ECONOMIC REVIEW SAID 10DAY.

THE MAGAZINE ALSO WARNED THAT A "HIGH-HANDED" RESPONSE 10 HORV KONG'S EFFORTS TO GAIN A RENEWAL OF HE BASEL

GUARANTEES PROTECTING 11 AGAINST LOSSES AS A RESULT OF STERLING LEVALUATION "WOULD PROBABLY TRIGGER SOCIAL UNREST IN HOCG KONG.

ACCORDING TO THE REVIEW, FONGKONG'S ASSETS IN BRITAIN REPRESENT "BETWEEN A QUARTER AND ONS-14ICD OF GONDON'S GOLD AND FOREIGN EXCHANGE HOLDINGS.

"THIS HUGE SUM IS STILL IN LONDON BECAUSE BRITAIN REFUSED HONGKONG THE RIGHT TO DIVERSIFY ANY SUBSTANTIAL PROPORTION CF ITS ASSETS, THE REVIEW SAID."

"IF THE WHOLE AMOUNT WERE SOLD OFF WITHIN THE NEXT FEW WEEKS, THE MOTHER COUNTRY WOULD BE HUMILIATINGLY BANKRUPTED AT THE HANDS OF ITS TINY COLONY," 11 SAID. NOCE SIN/LS

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RECAVED IN RCISTRY No. 51.

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