TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 43

C

#

Ref. EF.26/1II(70)

CONFIDENTIAL

THE TREASURY

HONG KONG

76

The Chief of the Economic

Intelligence Department,

Bank of England,

Threadneedle Street,

London EC2R 8AH, England.

Dear Sir,

6th May, 1974

10 MAY 1974

PA

2

521

9 JUL

никого

Sterling Guarantee - Hong Kong

I submit with this letter the following sterling

guarantee advices:

2.

(a)

for March 1974, prepared on the usual basis;

(b) for March 1974 excluding the backing for the

fiduciary issues of the note issuing banks;

(c)

(d)

for September 24th, 1973 excluding the back- ing for the fiduciary issues of the note issuing banks;

as at the last working day of March 1974 based on actual holdings on 28th February 1974 plus sterling interest received during March, plus sterling purchased during March to correct the February sterling position. All valuations being at market prices on the last working day of March (the modified settlement basis).

Advices (b) and (c) are provided in response to the request in your letter dated 25th March 1974. Advice (d) has been prepared in accordance with FCO Telno 358 of 10th April 1974. The latter is submitted without prejudice to the final outcome of the representations which have been made on the inter- pretation of the accidental breach provision in paragraph 2 of FCO Telno 1209 of 26th November 1973. The amount included in the advice described at (d) above in respect of interest received in March totals £4,721,022.58. Of this sum £1,816,185.39 was credited to Hong Kong Government accounts with the Bank of England and £2,904,837.19 to accounts with the Crown Agents. A sum of £4 million which was paid to the credit of Hong Kong Government

'