TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 79

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(NIF 9/548/1) 12.1X

ORWELL

TO IMMEDIATE GOVERNOR HONG KONG TELEGRAM NUMBER 897 OF 11 SEPTEMBER, 1973 MY 2 1.P.T.S: STERLING AGREEMENTS

FOLLOWING IS TEXT OF DESPATCH

1. I HAVE THE HONOUR TO REFER TO THE ATTACHED COPY OF THE DECLARATION MADE AT LONDON ON 11 SEPTEMBER 1973 BY THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND IN WHICH THE GOVERNMENT OF THE UNITED KINGDOM UNDERTAKES TO MAINTAIN THE STERLING VALUE IN TERMS OF THE UNITED STATES DOLLAR OF THE BALANCES OF HONG KONG ELIGIBLE FOR GUARANTEE UNDER

THE STERLING AGREEMENT.

2. OFFICIAL STERLING RESERVES HELD WITH BANKS OR OTHER DEPOSITARIES IN HONG KONG WILL BE DEEMED NOT TO BE OFFICIAL STERLING RESERVES FOR THE PURPOSES OF THIS DECLARATION UNLESS THROUGHOUT THE PERIOD THAT THE PROVISIONS OF THE DECLARATION ARE IN EFFECT AT LEAST AS MUCH STERLING AS IS DEPOSITED LOCALLY WITH EACH OF THOSE BANKS OR OTHER DEPOSITARIES ON OFFICIAL ACCOUNT IS HELD DIRECTLY IN THE UNITED KINGDOM FOR THEIR ACCOUNT BY THE UNITED KINGDOM CORRESPONDENTS OR HEAD OFFICES OF SUCH LOCAL BANKS OR OTHER DEPOSITARIES. EVIDENCE THAT SUCH COVER IS HELD ON

24 SEPTEMBER 1973 AND ON THE LAST WORKING DAY OF MARCH 1974 WILL BE

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