TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 246

CPS 100

MEDIA TE

EN CLAIR

FM HONG KONG 290345Z

UNCLASSIFIED

ORWELL

FA

RECOVED IN

REGISTRY N».51

OCT 1973

TO IMMEDIATE FCO TELNO 1104 OF 29 SEPTEMBER. 1973

STERLING.

2

2 1/

169

IN RESPONSE TO A NUMBER OF PRESS ENQUIRIES THIS MORNING, WE RELEASED THE FOLLOWING STATEMENT:

QUOTE THE HONG KONG GOVERNMENT IS STILL CONSIDERING THE TERMS OF THE UNILATERAL OFFER BY THE BRITISH GOVERNMENT TO GUARANTEE. OFFICIAL STERLING BALANCES FOR A FURTHER PERIOD OF SIX MONTHS AND, AS THE FINANCIAL SECRETARY HAS REPREATEDLY STRESSED, IS IN CLOSE

TOUCH WITH THE BRITISH GOVERNMENT.

THE GOVERNMENT WILL DECIDE AS SOON AS POSSIBLE WHETHER TO COMPLY

WITH THE CONDITIONS OF THE UNILATERAL OFFER AND THEREBY QUALIFY

FOR THE GUARANTEE.

MEANWHILE, IT SHOULD BE OBVIOUS TO ALL THAT HONG KONG IS VITALLY CONCERNED WITH THE STABILITY OF FOREIGN EXCHANGE MARKETS

AND PARTICULARLY THE MARKET FOR STERLING UNQUOTE.

FCO PASS COPY TO HONG KONG GOVERNMENT OFFICE LONDON

MACLEHOSE

CRWELL DISTRIBUCION

FRD

HKIOP

PS/ MR BOYLE

COPIES TO

HONG KONG GOVERNMENT OFFICE

6 GRAFCON

STREET

LONDON