TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 165

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PROVISION) YOU WILL QUALIFY FOR COMPENSATION UNDER THE GUARANTEE WITHOUT THE NEED FOR FURTHER STERLING PURCHASES. EQUALLY HOWEVER, WE WOULD NOT BE PREPARED TO COMPENSATE ON ANY EXTRA AMOUNT OF STERLING ACQUIRED AS A RESULT OF TOPPING-UP OVER AND ABOVE THAT UNDERTAKEN IN MARCH TO RE-ESTABLISH THE END-FEBRUARY POSITION UNDER YOUR INTERPRETATION OF THE ACCIDENTAL BREACH PROVISION.

4. ALL THIS BEING SAID, WE DO OF COURSE APPRECIATE THE DIFFICULTIES YOU HAVE FACED IN A PERIOD OF FALLING GILT PRICES. THIS IS WHY WE HAVE BEEN PREPARED TO ACCEPT A SPECIAL BASIS FOR SETTLEMENT ON THE LINES DESCRIBED ABOVE.

CALLAGHAN

ORWELL DISTRIBUTION FRD

HKIOD

2.

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ORWELL:

ER WRIGHT

MR HOLLAND

ADVANCE COPIES

MR MARSHALL

HD/FRD

·(2)

HD/ECONOMISTS DEPT (MISS HARVEY)

Ha HRION

RESIDENT CLERK