TNAG-0449-FCO40-514-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 38

Tolex received in clear from

15752

ACCOUNTANT GENERAL TREASURY

Despatcheda- Received:

08.00

OUR REF EF.26/1 PT.2

*

GOVERNMENT OF HONG KONG

Monday, 29th July 1974 Monday, 29th July 1974.

HONG KONG

25.

STERLING GUARANTEE

·

THANK YOU FOR YOUR 32.

WE DO NOT UNDERSTAND THE POINT THE TREASURY ARE MAKING AND WOULD BE GRATEFUL IF YOU WOULD EXPLAIN SPECIFICALLY HOW THEIR FIGURES DIFFER FROM OURS. SURELY THEY ARE NOT SAYING THAT THE L10 MILLION WHICH WE BOUGHT IN MARCH, BUT WHICH WAS EXCLUDED FROM OFFICIAL STERLING RESERVES BECAUSE OF THE U.K.'S INTER- PRETATION OF THE ACCIDENTAL BREACH PROVISION MUST NEVERTHELESS BE. INCLUDED IN TOER FOR THE PURPOSE OF CALCULATING THE ELIGIBLE

BALANCES?