TNAG-2471-FCO40-3595-Confidential-talks-between-the-UK-and-China-regarding-financ-1992 — Page 64

CONFIDENTIAL

In our view, therefore, it would provide a greater degree of flexibility if the paper were simply to state that the LAF bid/offer rates will be set at levels appropriate to the prevailing monetary situation, bearing in mind that the principal focus of LAF activity is maintenance of the link rate; and to delete any

reference to US rates.

I am copying this letter to Paul McIntyre at HMT.

Yours sincerely,

Cur's cutan

Синт

C D Elston

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