wle
Mr Youde
Sir D Watson
Mr Crowson/Mr Goodfellow
OLORET
RECEIVED IN REGISTRY No. 51
DA
24 JAN 1974
HKK 5/10
25T
STERLING: HONG KONG
1.
You will wish to see the attached letter from Mr Barratt to Mr Haddon-Cave.
2.
Mr Walker of the Treasury informed me of its contents after it was finalised. I went over once again our doubts whether a gentlemen's agreement would in fact avert trouble with Hong Kong. However I said that, if in the full knowledge of this, the Treasury wished to go ahead with the idea as one which would best serve HMG's global interests, there was little more that I could say. I therefore did not object post hoc to Mr Barratt having written as he did. But I thought it at least possible that the Governor and Mr Haddon-Cave might be having second thoughts about the value of a formal sterling agreement. As things had turned out, because of the recent fall of sterling against the dollar, the interim agreement might prove to have been worth about £30 m. to Hong Kong.
Mr Walker agreed that there might be force in this and we agreed to await Mr Haddon-Cave's reply.
3.
23 January 1974
cc (with enc.)
Mr Cambridge/Mr Marshall
SECRET
Rest
A C Stuart
Hong Kong & Indian Ocean Dept.
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