**
ly that is sufficient for all requirements. Our demands for
the S.S. dollar will be quite small in the future - a few millions
a year only - and all the rest can be British dollars.
So far as we know, Mexico intends to continue coining silver
dollars for export purposes, but they will have to change the
design, which will make them less popular in China, and there is
no doubt that the seigniorage charge will be placed sufficiently
high to meet the expense of coining. If they do it a little
cheaper than the British dollar we can't compete by turning out
an inferior article - moreover it is clear that the British
article obtains a preference in China on account of its reliability,
and indeed the letter from Mr. Mackintosh shows that Chinese are
willing to pay 2 1/2 per cent premium on the British dollar.
I am of opinion that the best course will be to continue getting
supplies from India, but we can wait for Sir Nathan's views. Inform
P.O. that we are doing so.
ACC20120
Mr. 21
龜
284
**
ま
ly that is sufficient for all r£quirements. Our demands for
the S.S. dollar will be quite small in the future a few milliona
a year only and all the rest can be British dollars.
So far as we know, Mexico intends to continue coining silver
dollars for export purposes, but they will have to change the
design, which will make them less popular in China, and there is
no doubt that the seigniorage charge will be placed sufficiently
high to meet the expense of coining. If they do it a little
cheaper than the British dollar we can't compete by turning out
an inferior article - moreover it is clear that the British ar-
ticle obtains a preference in China on account of its relia-
bility, and indeed the letter from Mr. Mackintosh shews that
Chinese are willing to pay 21⁄2 per cent premium on the British
dollar.
I am of opinion that the best course will be to continue
getting supplies from India, but wo can wait for $ir
Nathan's views. Inform P.0. that we are doing so+
and send el. Lerenite
ACC 20120
Mr. 21
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