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are necessarily offset by gains.
Mitchell who is very
conscious of the considerable paper losses incurred in Australian equities last year agrees that this is a sensible decision.
4. He has however put forward a proposal which we should like you to consider and which appeals to us here. Australia is no longer a scheduled territory; his proposal is that of the 25% free for investment in equities we should be allowed to invest up to 15% of the total portfolio in "foreign" equities leaving 10% of the total portfolio for investment in United Kingdom Equities. This would allow
the Crown Agents to invest on our behalf in growth areas such as Germany, France, the U.S.A. and Japan. Such an arrangement would in no way detract from the usefulness of the Sterling Agreement which in any case does not cover the 25% of the portfolio which you have allowed us to invest in Australia for the last few years.
5. May I have your reactions to this proposal as soon as possible. I am copying this letter to Mitchell whom you may wish to consult.
main t
D.M. Freegard
Tinancial Secretary
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