TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 266

DAILY TELEGRAPH

28 SEP 1975

cutting dated

19

FIN

ME

Rafm

Sosta HR.

STERLING FACES

THREAT FROM

HONGKONG

By Our City Staff

Britain's terms offered to sterling-area nations to induce them to keep most of their ster- ling balances intact in exchange for a guarantee against the pound's depreciation are practi- cally certain to be rejected by Hongkong.

This was reported last night in Nairobi where the annual meet- ing of the International Monetary Fund is taking place. Five years ago the value of sterling hold- ings was guaranteed not to fall below $2-3760 to the pound and last year Britain paid about £60 million to "top up."

The agreement was due to expire on Sept. 24, but on Sept. 6 the Treasury announced a six- month unilateral extension of the guarantee

:

H.K.