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You
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myself pronounced against the principle involved. It
would in these circumstances I fear be necessary to
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pass the Bill by 'force majeure under your orders
and I think it not improbable that a petition would
be got up to ask His Majesty to disalbow it. Since
the matter is (as you point out) essentially secret,
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I have not been able to consult my Executive Council.
nor to ascertain what public opinion would be on the
matter, but I feel convinged that my forecast is correct.
In these circumstances I would humbly and respectfully
suggest that the scheme should not be tried,
would venture to ask your reconsideration of the
alternative scheme set out in my confidential despatch
of the 20th. January, 1910, and which was approved by
all whom I consulted here.
5.
and I
Since writing the foregoing part
of this despatch I have heard that in consequence of
the unrest in China the Hongkong dollar which a few
days ago stood at 2 per cent discount in Shanghai has
now risen to 10 per cent premium, and that the Chinese are buying all the Hongkong dollars they can in the absolute assurance that they can rely on their stability, while they no longer place any reliance on their own
currency or notes. I submit respectfully that to demonetize British subsidiary coinage would in these
circumstances deal a regretable blow at British prestige,
and would probably create a panic at Shanghai and
dislocate trade. I am told that in the last few days
many million Hongkong dollars have been sent to Shanghai
and elsewhere from Hongkong.
I have the honour to be,
Sir,
Your most obedient, humble Servant,
Mangates
Governor, eto,.