London, 16 May 1968
Secret
Australia: Portfolio Outflow from the UK and Diversification
Mr. Ryrie’s minute below1 reports the outcome of the examination of the proposal made at the Financial Secretary’s meeting last week that we should ask the Australians to hold more sterling linked to the scale of the portfolio inflow they have been enjoying.
2. It is re-assuring to see that the Australians have in fact been behaving more or less as we should have wished them to do. In the circumstances, I agree that our best course is to concentrate on getting them to continue as they have begun, should the inflow be maintained. It seems a good idea to start off discussions with them in a rather modest way, e.g. with their Treasury Representative in London and take stock thereafter. There will be time to bring up heavier guns if—rather improbably—it looks as though they were not responding.
1 See UKNA: T 295/384, minute, W.S. Ryrie to D.F. Hubback, 14 May 1968
[UKNA: T 295/384]