FO371-24687 — Page 66

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Page 66

Telegram to Governor, Hongkong.

Your telegram

SECRET.

Following from Treasury for Rogers.

19

Secretary of State for the Colonies, telegram

No.271, will have given you the best reply to your

telegram under reference.

2. We now expect to make technical arrangements with

American banks which will establish a New York market in

sterling convertible at official rate.

3. This should virtually eliminate free sterling

from all transactions between the Dollar Area and the

Sterling Area.

4. You should also be prepared for a complete ban

of any leakages of sterling into the free market from the

unified area jointly covered by the British, French, Dutch

and Belgian Controls.

5.

Please telegraph any comments you may wish to

make on the likely reactions in your markets.

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