TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 269

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Prefi

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THE TIMES

25 SEP 1973

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cutting dated

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RELA...

REGISTRY No.

26 SEP 1973

HKIL

7

Hongkong reserves hope

Hongkong, Sept 24-Finan-

ci secretary, Mr Philip Had- don-Cave, said the colony had

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not made up its mind "whether to accept Britain's proposal to extend its guarantee of Hong- kong's reserves of about £750m held in London.

Returning from Nairobi today, Mr Haddon-Cave said Hongkong had no obligation to reply to the British offer before the current guarantee expires at midnight tonight. All it had to do was meet the conditions laid down by Britain and its unilateral offer will stand-at least, until a new agreement was negotiated-he told a news conference here.

make a proposal to the Gover nor. Sir Murray Maclehose, and the executive council shortly.

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He declined to elaborate on the proposals but affirmed Hong. kong's strong interest in stabi lity and in the market for sterl- ing in particular ".

Under the old agreement the Colony agreed to keep 89 per cent of its reserves in sterling but now wants to reduce this percentage.

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Asked if he was optimistic that Britain might agree to a reduc- tion from the 89 per cent limit, he said he was not dispirited ". The six-month guarantee which pledges the maintenance of Hongkong's reserves in sterl He had held talks with British ing at the rate of American Treasury and Bank of England $2.4213, expires in March.- officials in Nairobi and would Reuter.

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