TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 245

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4.

In this situation the Governor, a creature of HMG, has a positive duty to use every effort of which he is capable to hold the position until the Chancellor has taken the main decision and we know the framework within which we can tackle the

Hong Kong problem. The arguments in para. 12 of the brief

may need to be put very firmly to him in support of the general line in paras. 14 to 19.

5. It may help to let him know at some stage that the Prime Minister is taking a close interest in the problem of the sterling agreements and that the Chancellor will certainly want to report to him any move by Hong Kong which threatens critical UK policies, domestic as well as external.

Dom

D J MITCHELL

7 August 1973

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