!
ERE THE CAMAR
ENCLOSURES.
Enclosure No. 1.
322
Sir,
No. 30,709.
Colonial Office to India Office.
Colonial Office, Downing Street, 28th August 1903.
With reference to your letter (F. 2758) of the 7th of May, and to the reply from this Office of the 9th of May, I am directed by Mr. Secretary Chamberlain to transmit to you, to be laid before Lord George Hamilton, copy of correspondence with the Governor of Hong Kong on the subject of the proposed new agreement with the Banks for the coinage of British dollars in India.
2. Mr. Chamberlain would be obliged if his Lordship would kindly obtain an early report from the Government of India as to the probable capacity of the mints to cope with demands for British dollars in the future, having regard to the requirements of the rupee coinage, and also to the requirements of the new Straits Settlements dollar, as to which the Government of India has been in direct correspondence with the Governor of the Colony.
The Under Secretary of State
for India.
I am, &c..
C. P. LUCAS.
Annex 1.
From Colonial Office to Governor of Hong Kong.
(Confidential.)
Sir,
Colonial Office, Downing Street,
22nd May 1903.
I have the honour to transmit to you, for your information, copy of a letter from the India Office,* * India Office, 7th May.
enclosing copy of a letter from the Government of India, on the subject of the Agreement made on the 14th of December 1894 for the coinage of British dollars in India.
2. I have caused the India Office to be informed that I have no objection to the proposal to give notice to the Chartered Bank of India, Australasia and China, and to the Hong Kong and Shanghai Banking Corporation of the termination of the existing Agreement at the end of six months, and at the same time to intimate the terms on which a new Agreement will be entered into. I added that I was content to leave the negotiations with regard to the new Agreement to be carried on between the India Office and the Banks, but pointed out with refer- ence to the last paragraph of the letter from the Government of India of the 16th of April that the proposed action as to currency in the Straits Settlements and the neighbouring Malay States will not neces- sitate any restriction on the coinage of the British dollar for circulation in the East, though it is proposed temporarily to prohibit the importation of that dollar into the Straits Settlements and the Malay States, and at a future date to demonetize it there.
3. Arrangements will be made to secure priority of execution to the rupce and the proposed Straits Settlements dollar over the demands for
the British dollar.
Governor Sir F. A. Blake, G.C.M.G.,
&c., &c., &c.
I have, &c.,
J. CHAMBERLAIN.
13581.
B