TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 129

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CONFIDENTIAL # 3

ANNEX C TO XCS(73)9

MINISTER OF STATE

TREASURY

DECLARATION BY THE GOVERNMENT OF

THE UNITED KINGDOM

Definitions

1.

For the purposes of this Declaration:

:

"Sterling Agreement" means the Agreement constituted by the Exchange of Despatches between the Government of the United Kingdom of Great Britain

and Northern 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 Hong Kong;

"the average rate" and "the guarantee rate" have the meanings ascribed to them in paragraph 2;

"total official external reserves",

"official sterling reserves", "balances eligible

for guarantee" and "Minimum Sterling Proportion" have the meanings ascribed to them in the Sterling Agreement, subject to any modifications contained herein.

The Guarantee

2. The Government of the United Kingdom of Great Britain and

Northern Ireland hereby declare that, nothwithstanding the termination on 24 September 1973 of the Sterling Agreement, the Government of the United Kingdom will, in accordance with and subject to the provisions of this Declaration, undertake to maintain the sterling value in terms of the United States dollar of the balances eligible for guarantee under the Sterling Agreement if, during the period 25 September 1973 to 31 March 1974, the average of the representative rate in London for sterling against the United States dollar notified

CONFIDENTIAL

機密

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