§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer (1) what was the proportion of Hong Kong Colony's currency reserves held in sterling at the end of 1966, 1967, 1968, 1971 and the latest date for which figures are available;
(2) what is the aggregate value of sterling currency holdings in Hong Kong covered by the dollar exchange rate guarantee;
(3) what were the undertakings entered into by the colonial authorities in Hong Kong in return for the provision of exchange rate guarantees for currency held in sterling under the Basle agreement; and whether these undertakings have been observed;
(4) what discussions he has had with the colonial authorities in Hong Kong regarding the eligibility of the colony's reserves for exchange rate guarantee 340W under the current arrangements expiring in March; and with what result.
§ Mr. NottThe text of the 1968 sterling agreement with Hong Kong is set out in Cmnd. 3835 of November 1968. Details of their official reserve holdings are treated as confidential by the Hong Kong authorities. Nor, in any case, would it be appropriate for me to comment on the details of confidential arrangements with individual official sterling holders.
Following the offer by Her Majesty's Government to guarantee certain official sterling balances in the six-months period from 24th September, there have been discussions with the Hong Kong authorities on the application of this offer to Hong Kong. These discussions centred principally on the official balances held with the Hong Kong commercial banks, which it is no longer appropriate to cover under these arrangements. Conclusions satisfactory to both sides have been reached.