TNAG-0448-FCO40-513-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 89

CONFIDENTIAL

:

WE FOR OUR PART WOULD BE READY TO MAKE SURE THAT IN ADDITION TO TOPPING UP ONE MONTH'S POSITION, IF NECESSARY, DURING THE FOLLOWING MONTH, WE HELD A SPECIFIED REPEAT SPECIFIED MARGIN OF PERHAPS POUNDS STERLING. 2 MILLION OR POUNDS STERLING 3 MILLION TO GUARD AGAINST POSSIBLE FALLS IN GILT PRICES DURING THAT FOLLOWING MONTH. OR WE WOULD UNDERTAKE NOT TO TAKE ADVANTAGE FOR DIVERSIFICATION PURPOSES OF ANY RISES REPEAT RISES IN GILT PRICES UNTIL DURING

THE MONTH AFTER THAT IN WHICH THEY OCCURRED.

4. OUR IMMEDIATE INTENTION IS TO SUBMIT THE ADVICES REQUIRED BY THE DECLARATION, SO AS TO MAINTAIN OUR ELIGIBILITY FOR THE GUARANTEE.

AND WE DO NOT AT PRESENT ANTICIPATE DELIBERATELY GOING BELOW MSP

OR MSH DURING THE PERIOD OF THE GUARANTEE.

MACLEHOSE

ORWELL DISTRIBUTION

FRD

HKIOD

2

CONFIDENTIAL