Arkan
Had algo rep of and other
49206
As to last para of the letter and
para of the end:
our letter
the hole in 40246/00
expressed to opinion as to the merits of
the two alternative courses.
I quite agree
in an
Cade
this
with para 12 of the ence but I fear that
the Hong Kong Govt would in matter be rather at the mercy of the Banks
since it is
the Bank's judgment that they may mainly depend already
in
estimating
the amount of subsidiary coin requisitioned for since if the Hong Kong Govt established a mint for purchasing their own silver as required they could only purchase
it through
the intervention of the local Banks [as this can pare latter part of 40246/00]. We need not however discuss this point further since it seems
to me very clear that a Hong Kong mint would be
a dead loss to the Govt, at any rate for bars to
coare.
The Colony has not sufficient spare balances, at present, to justify it incurring the heavy capital outlay which
(1)-31215-4000-6-1900
86518-8000-11-1900
would be involved in establishing the Mint.
&
467
I send to you copy of our letter and
40246 of this reply for his consideration but observe that in view of the history
of the old Hong Kong Mint which was closed after it had been established for a very short time because it was found to involve a considerable loss to the Colony and
large expenditure
which would
in view of the fact be involved at the outset in establishing the mint which capital expenditure Hong Kong can ill afford at the present time considering the other public works which are more urgently required and in view of the fact that it seems
doubtful whether the mint could be
run save at a loss
Mr Chamberlain is not prepared to
at present be advised to approve the proposal.
5. W. 9.
ready to 17/5
views which the
he will be glad to consider any further
May
wish to put forward.
Send on the draft to Sir M. Smith at once.