TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 70

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PRIORITY.

CYPHER/CAT A.

FM HONG KONG 010419Z

CONFIDENTIAL

CONFIDENTIAL

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1x2)

file

mimates

PA

ORWELL

TO PRIORITY FCO TELNO 984 OF 1 SEPTEMBER. 1973

STERLING GUARANTEE AGREEMENTS.

12.1x

1. I THINK YOU SHOULD BE AWARE OF THE DRAFT OF A LETTER ADDRESSED TO ME BY THE HONG KONG CIVIC ASSOCIATION, THE PRESENT CHAIRMAN OF WHICH IS AN UNOFFICIAL MEMBER OF THE LEGISLATIVE COUNCIL.

2. THE LETTER REFLECTS THE GROWING AGITATION AND CONCERN AMONG INFORMED PERSONS OF ALL. RACES HERE ABOUT THE FUTURE OF THE HONG KONG STERLING BALANCES, WHEN ACKNOWLEDGING THE LETTER, I TOLD MR CHEONG-LEEN THAT I WOULD BRING IT TO YOUR ATTENTION.

3. TEXT OF THE LETTER IS AS FOLLOWS:

QUOTE WE WRITE TO YOU TO EXPRESS OUR CONCERN AT THE FUTURE OF HONG KONG'S LARGE STERLING RESERVES WHICH ARE STILL HELD IN

LONDON.

IT IS A GENERALLY HELD FEAR BY MOST PEOPLE IN HONG KONG, PARTICULARLY THE NON-ENGLISH SPEAKING RESIDENTS, THAT HONG KONG'S RESERVES ARE FROM YEAR TO YEAR BEING REMITTED TO AND HELD IN LONDON TO BOLSTER THE UNITED KINGDOM ECONOMY AT THE EXPENSE OF LOCAL SOCIAL AND ECONOMIC DEVELOPMENT.

THE UNITED XINGDOM GOVERNMENT BY ITS DELAYING TACTICS HAS DONE VERY LITTLE TO ALLAY THIS GENUINELY HELD FEAR ON THE PART OF HONG

KONG PEOPLE.

CONFIDENTIAL

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