nclosure 4. Enclosure 5.
I
107
together with my comments upon it. I also attach a Memo-
-randum by myself, dated the 22nd. November, 1909.
10.
latter
I discussed the proposals contain-
-ed in this Memorandum with Mr. J. R. M. Smith, Manager
of the Hongkong and Shanghai gank confidentially and I
found him fully in support of them except as regards the
measure of prohibition which is
foreshadowed and which
does not form a part of the scheme which would be
immediately put into operation. Its advisability can be
discussed later when the time arrives. My Memorandum was
circulated to the Executive Council and on the 5th. of
January, 1910, the Council unanimously advised the adoption
of the measures in so far as rehabilitation by means of
purchasing Hongkong Subsidiary Coins in the open market,
in the manner auggested, is concerned, and at a cost not
exceeding $1,000,000. I have therefore the honour to
request Your Lordship's sanction to take immediate steps
to this end.
11.
The course therefore for which I
ask Your Lordship's sanction is to purchase with a view to
demonetization whatever subsidiary coin is obtainable up
to an agreed date at the highest discount obtainable, and
to meet the loss incurred which it is hoped would not
exceed