C
Sir G. Fiddes
Please see Sir J. Anderson's
minute on 18371. I think that for the reasons
given in this desp. we must let him call for
tenders.
Par. 5 is a little obscure. What he means
I think is that before they have spent the full
5 millions the total to be spent from balanoes
on buying these coins in the open market) they
will begin to receive the amounts realized by
the C.A. Irom the sale of the silver. The opera-
tions of buying in the open market can then go on
with the help of
from the amounts realized without exceeding the
5 millions.
A
A.
approve by tel. and let C.4. have copy of
A
P
corresp.
Arc 2.6.th
·2.6.14
}
NA CONFIDENTIAL.
Sir,
1/3371
73371
19602
28
REC
REGE 9 44 14]
GOVERNMENT HOUSE,
HONGKONG. 9th. May, 1914.
I have the honour to acknowledge the receipt
of your cypher telegram of the 17th. of April informing me that
you approved of the proposal for purchase in the market of subsidi-
-ary coins but desired that the purchases should be made quietly and secretly by an agent in order to prevent artificial disturbance
of the rate of discount.
2.
I have carefully considered this question,
with the assistance of the Executive Council, and the conclusion, in
which the Council agree, I have come to is that it would not be
possible in this small Colony to keep such transactions secret.
3.
The Government has no Treasury vaults of its
own and it would therefore be necessary after each purchase to send
the coins to the Hongkong and Shanghai Bank to be shroffed, packed
and shipped to England. A very large portion of the Chinese Staff
of the Bank would be employed in these handlings of the coins and
since the Bank itself has never sold subsidiary coin out of the
Colony the fact that the transactions were on behalf of the
Government would soon be known.
4.
The best way in my opinion and in that of the
Executive Council in order to avoid undue disturbance of the
exchange value of subsidiary coin, is to make regular purchases
say weekly or biweekly; and the method of acquiring the coins that
will
THE RIGHT HONOURABLE
&C...
LEWIS HARCOURT, M.P..
&c.,
ke...
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