TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 60

"

Bu. 6

STERLING:

1.

sufcar

écessa

29

7

SPEECH

Reference. HKK 510 (69)

SPEECH BY ACTING FINANCIAL SECRETARY

Mr Jordan's speech attached is, as Mr Aston points out, exceptional. It is a good speech but more particularly from our point of view includes a section on Hong Kong's sterling reserves which to a large extent puts the record straight. It should go a long way to dispelling many of the all too commonly repeated misunderstandings about the extent to which HMG control the disposal by Hong Kong of

her reserves.

2. This is a very welcome development, not only because of the importance of accuracy on this vexed subject, but also as the first occasion on which a senior Hong Kong Government official has created an opportunity to present an issue correctly and factually and without attempting to pass any Hong Kong Government shortcomings onto HMG. This is something that we have wanted Mr Haddon-Cave to do for some time, but has been a duty which the latter has always evaded, thereby exacerbating the Hong Kong/UK relationship.

3. Mr Stuart has written a personal letter to

Mr Jordon, to congratulate him.

7 June 1974

M A Goodfellow

Hong Kong and Indian Ocean Department

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