TNAG-0382-FCO40-428-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 59

GRS 290A

PRIORITY

CONFIDENTIAL

CYPHER/CAT A

F FOREIGN AND COMMONWEALTH OFFICE 181930Z

CONFIDENTIAL

HKK5/1

НКК

TO PRIORITY HONG KONG TELEGRAM NO 1394 OF 18 DECEMBER. 1973

Lat

FOR HADDON-CAVE FROM BARRATT,

nor.

253

255

(HK)

TOA

LUM

NEAT

RF

THANK YOU FOR YOUR TELEGRAM NO 1474, WHICH I HAVE DISCUSSED WITH OUR PRESS PEOPLE IN THE TREASURY.

2. YOU WILL SEE FROM OUR SEPARATE TELEGRAM THAT THE WEEKEND PRESS HAS STIMULATED P.Q'S ON THIS SUBJECT: WE ARE PROPOSING TO RESPOND ONLY BRIEFLY, IN A DEADPAN WAY, AND ARE HOPEFUL THAT THIS WILL QUIETE! THE PRESENT INTEREST WITHOUT MUCH MORE ADO. 3. IN THE CIRCUMSTANCES, WE THINK THAT THE BEST WAY OF DEALING WITH THE SUNDAY TIMES NONSENSE IS TO IGNORE IT. THE RISK IS THAT A RESPONSE ON THE LINES YOU PROPOSE WOULD STIMULATE FURTHER EDITORIAL COMMENT TO JUSTIFY WHAT HAS ALREADY BEEN WRITTEN. THE FEELING HERE IS THAT. CRAWFORD, THE ECONOMIC EDITOR OF THE SUNDAY TIMES, WOULD BE TEMPTED TO REGARD YOUR LETTER AS CONFIRMING THAT HE HAD TUMBLED ONTO SOMETHING IMPORTANT. 4. WE WOULD THEREFORE COUNSEL AGAINST YOUR PROPOSED LETTER, BUT WILL OF COURSE GIVE A DISCREET STEER ON THE LINES OF YOUR DRAFT 1 ANY SUITABLE INFORMAL CONTACT WITH THE PRESS.

DOUGLAS-HOME

FILES

HKIOD

FRD

PARLY UNIT PS/MR.ROYLE

SIR.D.WATSON MR.YOUDE MR.MARSHALL MR.HOLLAND

CONFIDENTIAL

COPIES TO

MR.D.A.WALKER TREASURT MR. BARRETT

HONG KONG GOVT OFFICE 6 GRAFTON ST LONDON