TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 278

HONG KONG STANDARD

17/9/73

Read by influential Circulation: 25,000.

One of two English morning newspapers. members of the community.

Extract

From

Front Page Article

A

On the sterling issue, Sir Murray said that he considered the British Government's' offer to be

a standstill arrangement." He added: "It is designed to .meet the requirements of about 60 separate sterling holders.

those," hé

**Among continued, "our Hongkong situation is unique in various ways. One is that our minimum sterling percentage is uniquely high for a major holder. Another is that there are various technical differences; this means that though there are very good elements in the British offer, it cannot be immediately applied to Hongkong and this simply means that there must be very thorough and careful discussions of these points that affect Hongkong.

"These (discussions) will now take place and once they've taken place, we can consider - what the situation is in the Executive Council and take our *decision." ?

Questioned if Hongkong was

嘱

going to get a different deal from the existing arrangement,; he said: "It's a rather different! deal and this is why we need toj make sure that it can be adapted to Hongkong's special requirements. I might say that my talks with the Treasury were extremely friendly and there was no suggestion that they would wish to evade the sort of talks that we think necessary.”

Asked if Hongkong could perhaps make any changes to the arrangement in the next six months, Sir Murray replied: "You see, the small print of this proposal only came out last Tuesday. It is highly technical and exactly whether we can go along with it or not should emerge in the course of the discussions that we will now hold with the Treasury."

He added that the Financial Secretary will go to London for the sterling talks.

The Governor commented-

that it was "very wrong" to speculate on the possibility of. Hongkong not going along with the arrangement. "This offer was a sincere attempt to hold the situation and we shall now have talks and see if we can apply this sensibly to Hongkong.'

Following a 45-minute flight delay, Sir Murray was met at Kaitak by various leading officials, including the Sir Hugh Norman-Walker and the Colonial Secretary designate Miq Denis Roberts.

Lady MacLchose is still in Scotland and is expected to return in 10 days.

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