TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 8

CONFIDENTIAL

DRAFT CABLE FROM BANK TO ACCOUNTANT GENERAL HONG KONG

The Treasury have now authorised us to pay

compensation of £9,755,451 in respect of eligible

balances of £259,275,000 under the 1973 sterling

guarantee. This total for eligible balances is

slightly lower than that envisaged in

preliminary exchanges between us in respect of

this olgim because the calculation of "total

official external reserves" at end March was not

in fact affected by the modified settlement basis,

which relates exclusively to the calculation of

"official sterling reserves".

2. We have accordingly made payment today of the

amount indicated into the Hong Kong Government

'B' account as you have requested.

CONFIDENTIAL

!