TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 135

GRPS 228

IMMEDIATE

CYPHER/CAT A

FM HONG KONG 290439Z

SECRET

SECRET

RECEIVED IN REGISTRY No. 51

3- APR 1974

ORWELL

TO IMMEDIATE F C O TELNO 381 OF 29

HKK 5/N

以

MARCH, 1974.

FOR BARRATT (TREASURY) FROM HADDON-CAVE.

+༄་།

мая

43

Lay

reply

PA

LART

REF.

(31) (30)

NEXT

REF

3.15

YOUR TELNO 314.

PRESENT STERLING GUARANTEE.

FOR THE REASONS ALREADY STATED IN OUR TELEGRAM NUMBER 375

AND WHICH WE SHALL FURTHER SPELL OUT LATER, WE CANNOT ACCEPT THAT

WE HAVE BEEN IN BREACH OF OUR OBLIGATIONS UNDER THE PRESENT

GUARANTEE. AS THIS IS THE LAST WORKING DAY OF THE LAST MONTH

OF THE PRESENT GUARANTEE, HOWEVER, WE HAVE TAKEN STEPS TO GET OUR POSITION STRAIGHT SO FAR AS WE CAN ASSESS IT AT THE CLOSE OF

BUSINESS IN HONG KONG TONIGHT. WHETHER OUR ELIGIBLE STERLING

BALANCES WILL BE EQUAL TO OR A LITTLE BELOW CUR OPENING POSITION

ON 25TH SEPTEMBER DEPENDS LARGELY ON WHAT HAPPENS IN THE GILT EDGED MARKET WHILE WE ARE ASLEEP HERE. THUS, IN OUR VIEW, WE SHALL HAVE COMPLIED WITH PARAGRAPH 3 AND 6 OF THE DECLARATION AS INTERPRETED BY THE RELEVANT EXCHANGE OF TELEGRAMS AND, BY MAKING PURCHASES IN ALL OF POUNDS 26 MILLION THROUGHOUT THE PERIOD OF THE GUARANTEE, WE SHALL HAVE MAINTAINED THE MARKET VALUE OF OUR HOLDINGS AT 29 MARCH AT POUNDS 313 MILLION (OR THEREABOUTS).

MACLEHOSE

ORWELL DISTRIBUTION

FRD...

HWLOD

SECRET

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