TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 166

TREASURY:

MR FR BARRATT

MR W L ST CLAIR

MR D A WALKER

MRS HEDLEY-MILIER

BANK OF ENGLAND:

(SEND DIRECT)

MR R P FENTON

MR SW PAYTON

•

MR RE BARBER

FM HONG KONG 27040OZ

SECRET

ORWELL

1440x

RECEIVED IN REGISTRY No. 51

1- APR 1974

HKK 5710.

TO IMMEDIATE F C O TELEGRAM NUMBER 375 OF 27 MARCH.

FOR BARRATT (TREASURY) FROM HADDON-CAVE.

PRESENT STERLING GUARANTEE.

YOUR TELEGRAM ORWELL 309.

LAST

REF.

123

NEXT

REF

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43 41

39

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PARIK

197

UNTIL WE HAVE RECEIVED AND STUDIED THE TECHNICAL DOCUMENTS PROMISED IN PARAGRAPH 9 OF THE CHANCELLOR'S MESSAGE IN TELEGRAM 274, WE CANNOT COME TO A VIEW ON THE NEW GUARANTEE OFFER COVERING THE REMAINDER OF THE CALENDAR YEAR, BUT WE SHALL DO SO AS QUICKLY AS

POSSIBLE.

2. AS REGARDS OUR TOPPING UP OBLIGATION DURING (REPEAT DURING) THE LIFE OF THE PRESENT CUARANTEE, I DO REALLY FAIL TO SEE HOW THERE

CAN BE ANY MISUNDERSTANDING. IT SEEMS ABUNDANTLY CLEAR FROM PARAGRAPH 4 OF OUR TELEGRAM 1317 OF 17 NOVEMBER 1973 THAT THE DIFFICULTY WE ENVISAGED WOULD BE A CONTINUING ONE IF THE GILT EDGED MARKET CONTINUALLY WEAKENED. NOTHING WAS SAID IN YOUR

(214) HKK)

1973)

› TELEGRAM NO 1299 OF 26 NOVEMBER 1973 WHICH SUGGESTED THAT **A PURELY

ACCIDENTAL BREACH AT THE END OF ANY ONE MONTH WILL BE OVERLOOKED PROVIDED THERE IS NO BREACH AT THE END OF THE FOLLOWING MONTH'' (PARAGRAPH 1 OF YOUR TELEGRAM UNDER REFERENCE). ON THE CONTRARY,

THE USE OF SUCH WORDS AS OCCASIONS'', ''CHANGES' AND 'ADVICES" IN PARAGRAPH 2 OF YOUR TELEGRAM 1209 OF 26 NOVEMBER 1973 SURELY

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