TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 215

GR 190

IMMEDIATE

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FM FCO #31568Z

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ORWELL

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TO IMMEDIATE GOVERNOR HONG KONG TELNO 983 OF 3 OCTOBER, 1973. INFO SINGAPORE FOR PS MR ROYLE.

YOUR TELMO 1117

STERLING GUARANTEE AGREEMENTS

F

1.

IT WOULD HELP US IN OUR URGENT CONSIDERATION OF YOUR RESPONSE TO HAVE TOTALS OR ESTIMATES OF (1) COMMERCIAL BANK HOLDINGS OF STERLING ON 24 SEPTEMBER: (11) FORWARD SALES MATURING SUBSEQUENTLY: AND (111) STERLING HOLDINGS AND, SEPARATELY, NON-STERLING HOLDINGS

OF THE AUTHORITIES ON 24 SEPTEMBER.

2. WE SHOULD ALSO APPRECIATE YOUR VIEWS ON HOW A CONCESSION ON THE

LINES YOU PROPOSE, IF ONE WERE TO BE MADE, COULD BE PRESENTED FOR CONSUMPTION IN HONG KONG WITHOUT RISK TO THE GUARANTEE ARRANGEMENTS

ELSEWHERE. SEVERAL COUNTRIES, INCLUDING SOME MAJOR HOLDERS, HAVE EXPRESSED TO US GREAT DISQUIET ABOUT THE LEVEL OF THEIR MSPS.

DOUGLAS-HOME

ЈВ

ORWELL DISTRIBUTION

HKIOD

FRD

MR YOUDE

NIR MARSHALL-

SIR D. WATSON

SECRET

COPIES

TO:

MR D.A. WALKER, TREASURY.