TNAG-0382-FCO40-428-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 67

GRS 185

EN CLAIR

M HONGKONG 170820Z

UNCLASSIFIED

ORWELL

TO ROUTINE FCO TEL BTC 164 OF 17 DEC. 1973

STERLING RESERVES

REOT

18 DICIE

PA

2

HKK 5/1

18.xu

252

ALL ENGLISH AND CHINESE PRESS OVER THE WEEKEND AND TODAY CARRY THE

ANNOUNCEMENT OF THE

'UNDERSTANDING UNDER WHICH HONG KONG WILL

PARTICIPATE IN ARRANGEMENTS FOR THE GUARANTEE OF ITS STERLING

MOST

BALANCES UNTIL 31 MARCH 1974. MOST ALSO CARRY ADDITIONAL COMMENT

BY THE FINANCIAL SECRETARY THAT AGREEMENT IS IN RESPECT OF OFFICIAL STERLING HOLDINGS ONLY, IS ''SATISFACTORY TO BOTH SIDES AND RESULT OF DETAILED DISCUSSIONS EXTENDING OVER SOME MONTHS''

GENERAL TENOR OF THE REPORTS AND OF THE ONLY EDITORIAL CSUNDAY POST

HERALD) SO FAR GIVES CREDIT TO HONG KONG GOVERNMENT FOR NEGOTIATING

AGREEMENT COVERING HONG KONG'S INTERESTS DESPITE (BY INFERENCE)

RELUCTANCE ON PART OF BRITISH GOVERNMENT AND GIVES CREDIT ALSO TO THE BANKS FOR THEIR ''LOGICAL AND CANNY ASTUTENESS'': THERE

IS VIRTUALLY NO HINT OF CREDIT TO THE UK GOVERNMENT FOR THEIR PART

IN THE AGREEMENT.

2

i.

NEWS IS SET ALONGSIDE HEADLINE STORIES OF UK'S ECONOMIC

CRISIS WITH THE QUESTION BEING ASKED WHETHER STERLING WILL STANDI

BY MARCH AND WHAT WILL THEN HAPPEN TO SECURE HONG KONG'S POSITION.

COPIES OF PRESS REPORTS FOLLOW BY BAG TO DARRETT (TREASURY),

STUART CHKIOD), MISS LACKEY CORE 2)..

ASTON

ORWELL DISTRIBUTION

FRD

HKIOD

PS/MR ROYLE

期