TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 81

IMMEDIATE CYPHE /CAT A

GRFS 750

CONFIDENTIAL

136)

FM FCO 115337

REF.

(138)

CONFIDENTIAL

ORVELL

RA

(137)

3/1x

(MF 9/548/1)

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TO IMMEDIATE GOVERNOR HONG KONG TEL NO 896 OF 11 SEPTEMBER 1973 AND

TO ROUTINE GO ERNORS BERMUDA BELIZE.

Y IPT: TERLING AGREEMENTS

FULLOWING IS TEXT OF THE DECLARATION:

DECLARATION BY THE GOVERNMENT OF THE UNITED KILODOM,

DEFINITIONS .

1. FOR THE PURPOSES OF THIS DECLARATION:

L

''STERLING AGREEMENT EANS THE AGREEMENT CONSTITUTED BY THE EXCHANDE O DESPATCHES BETWEEN THE GOVERN ENT OF THE UNITED

INDOM OF CREAT BRITAIN AND ORTHERN IRELAND AND THE GOVERNMENT OF HONG KONG DATED 20 SEPTEMBER 1968 CONCERNING THE GUARANTEE BY THE GOVERNMENT OF THE UNITED KINGDOM OF THE STERLING RESERVES OF

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THE AVERAGE RATE' AND THE GUARANTEE RATE' HAVE THE HING ACCRIBED TO THEM IN PARA RAPH 2:

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"TOTAL OFFICIAL EXTERNAL RESERVES' "OFFITAL STERLING RESERVES'', 'BALA. CES ELIGIBLE FOR GUARALTEC'' AND 'MINIR.M STERLING PROPORTION'' HAVE THE MEANTIGS ASCRIBED TO THC IN THE STERLING AGREEMENT, SUBJECT TO ANY HODIFICATIONS CONTAINED HELEIN.

THE GUARANTEE

2. THE OVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTH- ERN TREL MD HELEBY DECLARE MAT, NOTHWITHSTANDING THE TERMINATION ON 24 SEPTE BER 1973 OF THE STERLING AGREEMENT, THE GOVERNMENT OF THE UNITED KINGDON ILL, IN ACCORDANCE WITH ALD SUBJECT TO THE PROVISIONS O. THIS DECLARATION UNDERTAKE TO MAINTAIN THE STERLING VALUE IN TERMS OF THE UNITED STATES DOLLAR OF THE ALANCES ELIGIBLE FOR GUARANTEE UNDER THE STERLING AGREEMENT IF, DURING THE PERIOD 25 SEPTEMBER 1973 TO 31.ARCH 1974, THE A ERAGE OF THE REP- RESENTATIVE RATE IN LONDON FOR STERLING AGAINST THE UNITED STATES

CONFIDENTIAL

/DOLLAR NOTIFIED

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