TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 228

Miss Pestell

Mr Cambridge

RESTRICTED

PA

9:

STERLING AGREEMENTS

1. I had a word with Mir Bostock about the article by Robert Gral an in today's Financial Times on talks with Hong Kong on sterling balances. (Mr Graham has of course got many details wrong, but is perhaps not surprising especially if he was briefed by Mr Haddon-Cave).

1

2. I told Mr Bostock that the point that concerned un mas ation attributed to the Treasury spokesman about Mr Barber "the other holders" at the CPM in Dar-es-Salaam in September, could disconcert non-Commonwealth holders ie the Gulf State Iceland especially if they interpreted the reference to menu thr some new deal would be settled at the CPM. Mr Bestock explaine the Treasury had been asked if Mr Barber would be meeting ang oll official sterling holders and had referred to the CFM, without ing to suggest that this would cover all those who mattered. agreed that in any future reference to the CFM. the Treasur careful to point out that not all those concerned were nemivers the Commonwealth, and that Mr Barber would also meet the then i the IMF/IBRD/ which follows the CFM.

(meeting

3. August is of course the time when Arab Finance Ministes away from the heat, so it is quite likely that they will not any questions on the basis of the FT report. f. Unless 0 0 I do not think we need send out any defensive briefing.

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9 August 1973

Cc: Mr Goodfellow, HKIOD

"r Harris, MED

Mr Hewitt, WED

Mr Franklin, Economists Dept

D I Lewty

Financial Relationg Tent