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7.
Another mode of making the payment would have been for us to have arranged with Messrs J.S.Morgan and Company here for the remittance to be made direct through them to their New York House but the secrecy of the business precluded us from approaching them in the matter. We however made enquiries as to what would be the result of this course and we are satisfied that the rate ssked for the transaction would have been considerably less favourable than that obtained by us it being even suggested that the rate required would probably have been $4.90 to the £. If payment on such a basis had been arranged the cost of the remittance, as represented by the rates of 4.80 and 4.85gths, would have amounted to about £8000.
8. We think therefore that taking into consideration the restrictions which existed as to the mode of trans- ferring the money to New York as good a bargain hes he en made over the matter as was possible.
9. As regards the repayment of the loan by the Chinese Viceroy, we understand that the arrangement provides that the amount shall be paid in Hong Kong. I
however
would point out that, as all sums repaid will have to be sent to us, it would have been better that the arrangement should have stipulated for repayment in London, and if any further transactions with the Viceroy should take place I would suggest that an alteration to this effect should be made, in order that the expense of remitting may be placed upon the Chinese authorities instead of upon the Government of Hong Kong.
10. The effect of the present arrangement will be to make a handsome present to the Eastern Banks in connection
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