TNAG-0382-FCO40-428-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 127

1

CUBA

236

ther Can way

that the bank are suggesting

the aud

аш

marably

less than

b

معنا

قامت

امان

be

with may Haddon Cave

bo indicared would be

necessary of gilfs go down

value.

Dear St. Clair,

BANK OF ENGLAND

Threadneedle Street

London EC2R 8AH.

4th December 1973.

EE/HK В город

the fallen

··73

Hor: Kou

to In Holland

My Goodfellow, HUIOD Du

شور

Sterling Guaranteet

The reference to "topping up" in paragraph two of Hong Kong 226 cable number 1361 of 27th November, implies that total official

external reserves have been rising notwithstanding the decling of

Thin mnya 13 million in the value of British Government securities. of course, have boon the case but we are not wholly persueded.

I think you may be interested to see the enclosed empy ef a note propared here which suggests that Hong Kong's reserves coming within the ambit of the prescut guarantee arrangements (1.0. Lin Government's own holdings) will change much less than those (inluld we

A rise of commercial bank funds), covered by the 1958 Agreement. over £13 million in reserven other than British Government securitien would be a relatively large increase and the note also illustrates the effects of possible movements in the various elements of total

reserves.

defir to

Leito

I am sonding a copy of this letter, with enclosure, to at the FCo.

Yours sincerely,

MECOVERY IN RASTRÝ MO.$1 10 DECISIS

~KKS ||

W.L.St. Clair, Esq.

(Signed) R. E. BARBER

[H.M. Treasury,

Parliament Street, London SW1P 3AG.)

}