P121 CEEFAX 121 Tue 4 Sip 23:44/05 1/2 STERLING M3 UP 0.75PC A sharp rise in clearing bank lending appears to be at the back of an August acceleration in US monetary growth. According to the Bank of England, the broad, sterling M3 measzri of the monj8 supply may have grown bz around 0.75pc during the August banking month. This was a good deal more than the Cit8 had expected, though sterling M1 growth since mid-February remains at onl= 9pc. * The underlying rise in sljarhnk bank lending was put at about £575m, against a July fall of about £225m. CITZNEWS Index 120P121 CEEFAX 121 Tue 4 Sip 23:44/23 2/2 RESERVES SLIP $71M Britain's official rjujtvru gf ggnd and foreign currency fell again last monvh. The Treasury estimates the underlying fall during the month to have totplled $71m (and the actual fall, $27m). This compares with July's near-rjqoud fall of $268m, the biggrst monthl= drg8 since March 1983. * The August figure was in line with the City's expectations. Obsjtvjt; h1d pointed to a need on the part of the authorities to smooth sharp sterling fluctuations during the month. CITZNEWS Index 120