TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 230

17/8

SECRET

C

PS/Mr Royle

HONG KONG: STERLING AGREEMENTS

HKK 5/1

бо

同

63

B

1. The Sterling Agreement with Hong Kong expires (in common

with those for the other 55 signatories) on 24 September.

After discussions between the Prime Minister and Chancellor

it was decided that a final decision on what if anything

might succeed them should be taken in time to communicate

with Agreement holders in early September. This may not be

until just before the Commonwealth Finance Minister's Meeting

(17 September).

2.

The Chancellor sent an interim personal message on

31 July to the Governor (FCO telegram number 742) (and on

similar lines to all the signatory governments,) to inform him

that consideration was being given to whether some sort of

arrangement like the Sterling Agreements should replace them;

and inviting views.

3.

For several months Hong Kong have been pressing for an

indication of what the future position would be. In view of

the timetable for Ministerial decisions it has not been

possible to say anything positive to any of the Agreement

holders, although it has been emphasised to the Governor

(FCO telegram number 755) that it should not be assumed that

no arrangements will be made in relation to official sterling

/balances

SECRET 1.