TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 282

(16939) Dd.897300 200m 9/72 G.W.B.Ltd. Gp.863

File No.

MF 9/501/1

OUTWARD

Department

FRD

Security Classification

CONFIDENTIAL

Drafted by

D I Lewty

TELEGRAM

(Block Capitals)

G 206

Precedence

ROUTINE

DESKBY

Tel. Extn.

FOR

COMMS. DEPT.

(Date)

USE

Despatched

POSTBY.

(Time)

..Z

PREAMBLE

(Time of Origin)

.Z(G.M.T.)

(Restrictive Prefix)..

(Caveat/

(Security Class.)...

CONFIDENTIAL

ORWELL

Privacy Marking)

(Codeword)

(Deskby)

TO........ ROUTINE.

GOVERNOR GIBRALTER

Tel. No.

of...

(precedence)

(post)

AND TO (precedence/post)

AND SAVING TO

SEYCHELLES. MONTSERRAT.

CAYMAN ISLANDS, ST HELENA

FALKLAND ISLANDS, AND WELLINGTON

REPEATED TO (for info)

XY 42

Z

..Z

..

SAVING TO (for info)

ORWELL

Distribution:-

FRD

GGD

Copies to:-

HKIOD WIAD PDTD

[TEXT] MY TEL NO 881 TO GOVERNOR HONG KONG. OF 6 September:

STERLING AGREEMENTS

1.

My IFT sets out the arrangements under which HMG will continue to guarantee your official sterling reserves. The present guarantee arrangements are set out in my telegrams number 15 Saving of 27 September 1968 to you and my telegrams numbers 1 and 2 Saving to Montserrat of 11 March 1969.

2.

For your Cwn information the arrangements we are extending to you are more favourable than those which have been offered to the independent holders of sterling in two respects:

3.

(a) 100% of your eligible sterling balances will be guaranteed. In other cases a deduction equal to 10% of total external reserves is made; and

those held on In other cases

(b) Your eligible balances will be the last working day of March 1974. eligible balances are those held on 2 September 1973 or the last day of March 1974 whichever are the lower.

I should be grateful is you would confirm that you intend to accept this offer.