TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 209

ORWELL:

MR VRIGHT

MR HOLLAND

ADVANCE COPIES

MR MARSHALL

PS/M Royle

Sid warson..

D

7HD FRD (2)

HD ECONOMISTS DEPT (MISS HARVEY)

·HS HKIOD

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TREASURY:

PA

2 st.

MR FR BARRATT

181)

LED)

Mr. W. h. St. Clair,

Mr. D. A. Walker, MRS HEDLEY-MILLER

(SEND DIRECT)

BANK OF ENGLAND):

MR R P FENTON

MR S W PAYTON

MR RE BARBER

CYPHER/CAT A

FM HONG KONG 050900Z

SECRET

ORWELL

12

20

TO IMMEDIATE FCO TELNO 1133 OF 5 OCTOBER.

A

YOUR TELEGRAM 983.

STERLING GUARANTEE.

YOUR PARAGRAPH 1 (1): WE DO NOT HAVE FIRM FIGURES OF THE ACTUAL (READY AND FORWARD) STERLING POSITIONS OF THE COMMERCIAL BANKS ON 24 SEPTEMBER AND IT WILL BE A FEW WEEKS BEFORE WE HAVE THEIR 38

SEPTEMBER POSITIONS IN STERLING AND ALL OTHER FOREIGN CURRENCIES. BUT, AT 31 AUGUST, BANKS' READY POSITIONS IN STERLING AMOUNTED TO POUNDS STERLING 213 MILLION AND THEIR NET OVERBOUGHT POSITIONS (1.E. NET OF FORWARD SALES) AMOUNTED TO POUNDS STERLING 110 MILLION. THE TOTAL OF BANKS' DEPOSITS WITH THE EXCHANGE FUND COVERED

BY THE EXCHANGE FUND GUARANTEE SCHEME WAS POUNDS STERLING 220

MILLION ON 24 SEPTEMBER,

2. YOUR PARAGRAPH 1 (11): WE DO NOT KNOW THE EXTENT OF BANKS' FORWARD SALES MATURING AFTER 24 SEPTEMBER, BUT WE HAAVE ESTIMATED (VERY ROUGHLY) THAT THEIR NET OVERBOUGHT POSITIONS IMMEDIATELY AFTER 24 SEPTEMBER WERE A MAXIMUM OF POUNDSS STERLING MILLION

/ FAND