This article continues the annual series of estimates of the United Kingdom's external assets and liabilities, and gives figures for the end of 1974. Notes and definitions for the main items are given at the end. The compilation and presentation of the estimates follow the usual pattern. Both sterling and foreign currency items are included. Assets and liabilities are classified as 'public sector' or 'private sector' according to the status of the domestic creditor or debtor. Public sector items are treated as in the balance of payments accounts, where reserves and related official financing items are shown separately from other official assets and liabilities. Private sector items are grouped under the headings 'investment' and 'banking and commercial'. An article in the September 1970 Bulletin pointed out the limitations of an inventory of this nature and the problems of valuation of investments. These qualifications still apply. In particular, the estimates of portfolio investment should be regarded only as broad indications of magnitude.