TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 283

File No.

(16939) Dd.897300 200m 9/72 G.W.B.Ltd. Gp.863 (17785) Dd.897533 400m 5/73 G.W.B.Ltd. Gp.863

MF 9/501/1

XY 42

OUTWARD

Department

FRD

Security Classification CONFIDENTIAL SECRET

Drafted by

TELEGRAM

(Block Capitals)

D I LEWTY

G 206

Tel. Extn.

Precedence ROUTINE

DESKBY

....Z

FOR

COMMS. DEPT.

(Date)

USE

Despatched

POSTBY...

(Time) ....................................Z

PREAMBLE

(Time of Origin)

.Z(G.M.T.)

(Restrictive Prefix).

(Security Class.).

CONFIDENTEN SECRET

(Caveat/

Privacy Marking)

(Codeword)

ORWELL

(Deskby)

ROUTINE

GOVERNOR GIBRALTER

TO.....

Tel. No.

(precedence)

(post)

AND TO (precedence/post)

of...

SEYCHELLES, MONTSERRAT, CAYMAN IS, IT HELENA, FALKLAND

AND SAVING TO

ITELJIC

METICRTVS (LIST ATTICHELD) AND

VLASTIVUI

REPEATED TO (for info)

MIPT: STERLING AGREEMENTS

SAVING TO (for info)

Distribution:-

[TEXT]

TII NO 881 ON 6 Smarandum SERDING

ORELL

FRD

GGD

HKIOD

WIAD PDTD

1968+ 1969

Copies to:-

JUVIINERITONG HEN

1. The Government of the United Kingdom will, in accordance with and subject to the provisions set out below, undertake to maintain the sterling value in terms of the United States dollar of the balances eligible for guarantee under the arrangements described in the telegrams under reference if, during the period 25 September 1973 to 31 March 1974, the average of the representative rate in London for sterling against the United States dollar notified each working day by the Bank of England to the International Monetary Fund for the purposes of Fund transactions ("the average rute") is lower than the average of the sterling/United States dollar.rate in London at noon on 4,5 and 6 September 1973 viz. United States $2.4213 = £1 ("the guarantee rate"). The amount due under the guarantee will be calculated on the basis of the difference between the average rate and the guarantee rate.

2.

The guarantee will apply to the balances eligible for guarantee at the close of business in London on the last working day of March 1974. For all purposeɛ relating to the guarantee, overdrafts and short-terin advances in sterling must be netted against official sterling reserves.