TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 178

WKS 700A

ERCLAIR AND BY BAG

CO 1516552

UCLASSIFIED

PA

'Sterling'

26

1824

TO CERTAIN MISSIONS AND DEPENDENT TERRITORIES.

GUIDANCE NO 42 OF 15 MARCH 1974

RECEIVE REGISTRY N.

18:1AR 1974

OFFICIAL STERLING BALANCES

HKK 5/10.

1. THE TREASURY TODAY C 15 MARCH ) ANNOUNCED THAT H. M. GOVERNMENT

RAD DECIDED TO CONTINUE TO GUAPANTEE CERTAIN CFFICIAL STEPLING

HOLDINGS CITIL THE END OF 1974.

2.

INSTRUCTIONS FOR USE.

YOU MAY DRAW ON THIS GUIDANCE

TELEGRAM FREELY AS NECESSARY.

3. THE STERLING AGREEMENTS, ORIGINALLY NEGOTIATED IN 1968, VERE

EXPLAINED IN THE ACCOMPANYING WHITE PAPER THE BASLE FACILITY.

鲁霍

AND THE STERLING AREA ( CMND 3787). THE GUARANTEE WAS

IMPLEMENTED IN NOVEMBER 1972 WHEN THE STERLING EXCHANGE PATE

HAD FALLEN AND REMAINED FOR 30 CONSECUTIVE DAYS BELOW DLES 2.3700

,( 1 PER CENT BELOW THE FORMER DLRS 2.40 PALITY).

TOTALLING PCS 59 MILLION WERE MADE.

PAYMENTS

4. THE STERLING AGREEMENTS EXFIRED ON 24 SEPTEMBER 1973. AT

THE BEGINNING OF SEPTEMBER THE GOVERNMENT EXTENDED THE

GUARANTEE FOR A SIX MONTH PERIOD IN THE FORM OF A GOVERNMENT

DECLARATION SENT TO SIGNATORIES OF STERLING AGREEMENTS WHICH

WERE THEN IN OPERATION. THIS EXTENSION PROVED TO CE A COEFUL

STABILISING FEATURE THROUGH A PERIOD OF GREAT UNCERTAINTY IN THE

INTERNATIONAL FINANCIAL SITUATION. THE COST WILL DEFEND ON THE COURSE

OF THE STEPLINC/DOLLAR RATE UNTIL THE END OF MARCH AND CỬ THE

AMOUNT OF STERLING WHICH IS FOUND TO BE ELIGIBLE FOR GUAPMITEE,

/IT IS