TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 37

CONFIDENTIAL

Reference.....

29

RECEIVED

REGISTRY No.52

19 JUL 1974

наколо

Mrs Denza (Legal Advisers, K194)

STERLING GUARANTEE: HONG KONG (IMPLEMENTATION)

1.

We have all received copies of Mr Jones' note for the record of 5 July.

2. I understand, that earlier last week the Treasury were adamant that Hong Kong could not be paid compensation on all that they had claimed but that the Bank of England wished to pay up on the whole amount. Since we in the FCO discovered this question had arisen and asked to be informed and consulted, I believe the Treasury have expressed slightly more doubts about the strength of their attitude. It may be that in the course of this week they may decide not to quibble with the returns put in by Hong Kong.

*

3. However, so that we are ready to offer comments or to question whatever line the Treasury propose I should be grateful for your advice on whether or not we have a strong case for contesting Hong Kong's

Only if we have a view of their eligible balance. case which we can certainly win do I think that we should reveal to Hong Kong that there is once more a difference of opinion between us.

8 July 1974

cc: Mr Crowson HONG KONG

Cathie Patell

CE Pestell

Financial Relations Department

* I have appeated they should pattern of Hay Kapi

compone

the putterm

behomain in Heuch with that of caution if they always topped up the

inters we canbully

months

fall amout regardles

o

بعد النعمة

CONFIDENTIAL

Mi

PA

This went

شما

to Hay Kory! But it was you

I told

My M. Growe 1 the BISMO & sent back, so no larm done; Miss Protell·

| 14/