TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 7

To the Accounting Officer.

IN Treasury.

1973 Declaration by the Government of the United Kingdom: Hong Kong Implementation of the Guarantee

The Government of Hong Kong as reported external reserve figures as at the close of business on 24th September 1973 and 29th March 1974 as shown below, and the calculation relevant to the guarantee is as follows:-

£

L

.} 29th March

1974

24th September 1972

(modified

basis)

C 29th March. 19h

(a) Total official external

resorvos

397,277,000

394,612,000

3,61.

Official sterling reserves Lose 10% of total official

external reserves (or, equities, whichever largor) (d) Less forward sales of sterling

o) Guaranteed sterling

312,945,000

208,736,000

309,201, Mah

39,723,000

NIL

273,217,000

39,461,000

NIL

259,275,000

39,461,000

NIL

269, /45,000

(f) Amount due on the

basis of these

£259 275,000 x 2.1213 2.33351

259,275,000 = £9,755,

451

figuren

We have ascertained that the figure reported under (b) for 24th Soptombor 1973 and 29th March 1974 an official sterling resursen in coufied by depositaries as bold in the UK; vo have also ascertained that the sterling reported an hold at 23th February 197, which van incorporated in the modified 29th March advice, is confirmed by dopositarios as bold in the UK. We are cat!eriod, on the information at our disposal, that the official sterling roserves as reported confor to the dofinitions roferred to in paragraph 1 of the Declaration by tho Government of the United Kingdom of September 1973. Tho bank, ha Ing examined the information called for under paragraph 6(3)(b) of the Doolaration, have no reason to believe that valuations used aro unreasonable and recommend that they be accepted.

acprepte

Dato

24th July 1974

J

Chief of Economic Intelligence Lopt. Bank of England

C

To the Chief Cashior,

Bank of England,

1973 Declaration by the Government of the United Kingdom:

Hong Kong

Implementation of the Guarantee

I am satisfied that, in accordance with the Bank of England statement above and on the basis of the information at my disposal, 49,755.451 is due to the Government of Hong Kong under the Declaration by the Government of the United Kingdom of September 1973.

I accordingly instruct you to pay that sum to the Government of Hong Kong to the dobit of the Exchange Equalisation Account.

Date

25 vüht

DA