TNAG-0381-FCO40-427-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 7

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7. WE WOULD NOT WISH TO PUBLISH OUR TOTAL STERLING HOLDINGS BECAUSE, AS THE GENERAL ACCOUNT ELEMENT IS OBTAINABLE FROM PUBLISHED ACCOUNTS, THE EXCHANGE FUND'S HOLDINGS COULD THEN BE DEDUCED AND

>

A GUESS MADE AS TO THE EXTENT TO WHICH THE NOTE IS CURRENTLY

BACKED.

8. WE APPRECIATE THAT, IF INDELICATELY HANDLED, PRESS INTEREST AND PUBLICITY CAN BE HARMFUL TO ALL OF US AND THE PRESENTATIONAL ASPECTS WILL BE VERY CAREFULLY HANDLED AT THIS END, AS THEY ALWAYS HAVE BEEN. I WOULD ADD THAT THE LOCAL PRESS HAS BEHAVED RESPONSIBLY THROUGHOUT THIS WHOLE AFFAIR, WHICH IS MORE THAN ONE CAN SAY OF THE BRITISH PRESS. (SEE, FOR EXAMPLE, THE ACRTICLE OFFENSIVELY HEADLINED ''YELLOW STREAK'' IN THE GUARDIAN OF 14TH NOVEMBER).

9.

WE ASKED PAYTON WHEN HE WAS HERE WHETHER IT WOULD BE POSSIBLE

TO PRODUCE FACTS AND FIGURES SHOWING THE ADVANTAGES OF

BEING IN STERLING AS AGAINST OTHER CURRENCIES DUCING THE FIVE YEAR

GUARANTEE PERIOD 1968/73. IT WOULD BE HELPFUL TO US TO HAVE SOMETHING TO PUT ACROSS LOCALLY. WE DO NOT HAVE SUFFICIENT DATA IN HONG KONG TO CALCULATE THE COMPLEX COMPARISIONS WITH OTHER CURRENCIES. PAYTON THOUGHT THAT AN EXERCISE HAD BEEN DONE SOME TIME AGO. IF SO, COULD IT BE BROUGHT UP TO DATE AND SENT

TO US.

MACLEHOSE

ORWELL DISTRIBUTION

FRD

HKIOD

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