TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 169

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SECRET

EXECUTIVE COUNCIL DECISION OF 2.10.73

The Council considered memorandum XCS(73)9.

The Council ADVISED and the Governor ORDERED:

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187

Miss Pestell FRD 16 See

The Govenor has

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Xashed that

this should not

F.CO.

les

10/10

FA

1

18.1

that the Hong Kong Government's response to the British Government's Declaration of 6th September should take the form of an offer to maintain the level of official sterling reserves (excluding the banks' sterling)

at the position reached after 24th September 1973 subject to these reserves being guaranteed by Her Majesty's Government at the rate of US$2.4213 to $1.

The Council NOTED that careful consideration would have to be given to the public relations aspects in order to meet both local political considerations and yet not disturb the foreign exchange markets.

B. G, JENNEY

Clerk of Councils

(192)

SECRET