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Duke

CONFIDENTIAL.

Sir,

C. O.

7755

229

RESS O SEP 12

GOVERNMENT HOUSE,

HONGKONG,

2nd. August, 1912.

With reference to the correspondence noted in

the margin, I have the honour to

enquire whether you now approve of the

course indicated in the first para-

overnor's Confidential Despatch

of 26th. June, 1911. 236 Secretary of State's telegram offe

8th. September, 1911. do. Secretary of State's Secret Des- -patch of 13th. September, 1911.

do. overnor's Secret Despatch of cth.

November, 1911.

6 4109 You

#

-graph of Sir F. Lugard's Confidential

Despatch of the 26th. of June being

adopted.

There is an accumulation of Hongkong silver

subsidiary coin to the face value of $840,438.75 at present in the

Bank awaiting either sale or demonetization.

2.

In view of the present political situation in China and of the obligation which that country is under to reform her currency I am not prepared to advise any active steps by this Government for the rehabilitation of the subsidiary coin of the Colony, although the provisional Government at Canton is aggravat- -ing the situation by issuing large quantities of small silver

coins from the Mint there.

Cor. 28606

#

3.

The paraphrase on record here of your cypher telegram of the oth. September, 1911, refew to the "views of His Majesty's Government as in letter from the Lords Commissioners of

HE RIGHT HONOURABLE

LEWIS HARCOURT, M.P.,

&c.,

&C.,

&c...

the

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