TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 179

IT IS IMPOSSIBLE TO GIVE FIPM FICURES BEFORE THEN. THE GOVERNMENT

PECISION TO INTRODUCE A NEW QUARANTES WAS MADE IN THE LIGHT OF

COMMENTS RECEIVED FROM SOME OF THE COUNTIRES CONCERNED AND WITH

THE PROSPECT ́F A FURTHER PERIOD OF DIFFICULTY AHEAD.

5. UNDER THE NEW GUARANTEE, THE ELIGIBLE BALANCES OF INDIVIDUAL

OFFICIAL HOLDERS WILL BE DETERMINED ON THE BASIC OF THE AMOUNT OF

STEALING HELD AT THE DEGINNING OR END OF THE PRESENT GUARANTEE

PERIOD OR AT THE END OF THE NEW GUARANTEE, WHICHEVER IS LOWEST,

THE AMOUNT OF ELIGIBLE BALANCES CAN THEREFORE ONLY BE DETERMINED

AT THE TID OF THE QUARANTEE PERIOD: IT IS THUS NOT FOSSIBLE TO

GIVE ANY FIRM ESTIMATES OF AMOUNTS COVERED, AND THE PRECISE

AMCUNTS COVERED UNDER THE PRESENT GUARANTEE APE WTILL NOT

KNOWN. ( THE TOTAL OF OFFICIAL STERLING BALANCES IS GIVEN IN

TABLE 24 OF THE BANK OF ENGLAND QUARTEPLY BULLETIN AS PDS 2,712

BILLICH AT THE END OF SEPTEMBER 1973, BUT THESE FIGURES ARE DRAWN

UP ON A COMEWHAT DIFFERENT BASIS IRELAND IS EXCLUDED AND NOT

ALL OVERSEAS STERLING AREA COUNTRIES ARE PARTICIPATING IN THE

QUARANTED, WHILE THERE ARE ALSO DIFFERENCES IN VALUATION

AND COVERAGE.>

6. THE QUARMITEE WILL BE GIVEN IN THE FORM OF A GOVERNMENT

DECLARATION WHICH IS BEING SENT TO FARTICIPANTS IN THE PRESENT

ARRANGEMENT. THE BROAD STRUCTURE OF THE NEW GUARANTEE FOLLOWS

TEAT OF THE EXISTING SIX-MONTH ARRANGEMENT, THOUGH WITH SOME

"CCIFICATIONS. IN PARTICULAR, THE NEW GUARANTEE WILL DE EXPRESSED

IN TERMS OF THE EFFECTIVE EXCHANGE BATE FOR STERLING,

GIVES A BETTER MEASURE OF THE VALUE OF STERLING IN

WHICH

/PRESENT

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