TNAG-0449-FCO40-514-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1974 — Page 4

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CONFIDENTIAL

TO PRIORITY HONG KONG TELNO 1044 CF 28 NOVEMBER, 1974

YOUR TELNO 1105: REPLIES TO PQS.

1. THE FIGURES IN THE TABLES GIVEN IN THE ANSWER UNDER (B) OF YOUR

TELEGRAM UNDER REFERENCE ARE CAUSING US SOME INTERPRETATIVE

PROBLEMS. THE 1973 FIGURE FOR TOTAL ASSETS IN THE FIRST COLUMN

APPEARS TO BE LESS THAN TOTAL OFFICIAL RESERVES AS WE UNDERSTAND

THEM, WHILE THE FIGURE FOR STERLING IN COLUMN TWO IS WELL BELOW

YOUR OFFICIAL STERLING HOLDINGS AS MOST RECENTLY REVEALED IN YOUR

TELNO 1986. SINCE APPROXIMATE FIGURES FOR THE RESERVES HAVE OFTEN

BEEN GIVEN IN PUBLIC (A RECENT ISSUE OF QUOTE THE FAR EASTERN

ECONOMIC REVIEW UNQUOTE GAVE A FIGURE OF £400 MILLION), IT IS NOT

IMPOSSIBLE THAT THE APPARENT DISCREPANCY MAY BE PICKED UP AND

RAISED IN A FURTHER PQ OR IN CONVERSATION WITH MINISTERS, WE NEED

TO BE IN A POSITION TO EXPLAIN TO A LAYMAN. WE COULD UNDERSTAND

THAT YOUR TOTALS MIGHT BE GREATER THAN YOUR OFFICIAL RESERVES,

SINCE THEY COULD INCLUDE ITEMS NOT COUNTED IN THOSE RESERVES: BUT

WE ARE PUZZLED THAT THEY SHOULD APPARENTLY BE LESS, CAN YOU

HELP IF POSSIBLE BY 2 DECEMBER WHEN THERE'S A MINISTERIAL MEETING

0!! HONG KONG.

CALLAGHAN

1

FILES

HRIOD

FRD

PS/LORD GORON NY- ROBERTS

SIRD NATSON

MR MALE

CONFIDENTIAL

COPIES

TO

MR ST KIDD

HK GOUT OFFICE, LONDON