TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 4

IN PRIVATE COMMENT TO ME AT WEEK END HE REGRETTED HAVING TO

INDULGE IN SOME BRITAIN KNOCKING BUT SAID IT IS A VERY TRICKY SITUATION. HE GENUINELY CANNOT UNDERSTAND WHY IT WAS LEFT SO LATE

TO OFFER AN EXTENSION AND WHY THERE WAS NOT A DIALOGUE TO ARRIVE

AT A MUTUALLY ACCEPTABLE SOLUTION WHICH

COULD HAVE BEEN FOUND,

GIVEN TIME HE IS SURE

Th

ACCORDING TO BOTH MAIN ENGLISH LANGUAGE

AND SOME CHINESE

PRESS.

# 1

AT WEEK END A HONG KONG GOVERNMENT SPOKESMAN HAS SAID THERE IS NO TRUTH'' IN REPORT THAT FINANCIAL SECRETARY HAD AGREED TO KEEP HONG KONG 'S RESERVES IN STERLING AND FINANCIAL SECRETARY CONSULTED' IN DAR-ES-SALAAM BY PHONE IS QUOTED AS SAYING IT IS COMPLETELY

UNTRUE''

ASTON.

ORWELL DISTRIBUTION

FRO

FED

HKLOD

PS/MR ROYLE

MR WILFORD

MR YOUDE

I

!

2