TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 205

460

PA.

10 August 1973

CONFIDENTIAL

STERLING

I am writing, as at this morning's meeting I said I would, about the so-called Haddon-Cave/Boll facility which is set out in Raymond Bell's letter to you of 1 December 1972. It emerged that there have been differences between our two sides in the interpretation of the agreement and misunderstandings have arisen. As I said at the meeting, we cannot accept your interpretation.

2. However the immediate question concerns the rate of diversification of sterling to be authorised for the Hong Kong banks between now and the expiry of

You the existing sterling agreement on 24 September. said that you wished to authorise a facility of up to £6 million per week. Since this closely coincides with the authorisation given in our telegram No. 755, bearing in mind that since the beginning of August, only £6 million has been diversified, we are willing to agree to your continuing to authorise the banks to diversify by up to £6 million per week until the 24 September 1973.

CP Haddon-Cave Esq

Mrs M E Hedley-Miller

CONFIDENTIAL