From The Treasury

Hong Kong.

To The Secretary to the Lords Commissioners.

F. M. "reasury

London.

6

Y

Hong Kong, 15th February 1917.)

of the demands made upon him. The information in the

Treasury Chest Officer's letter is now more than two months

cld, but if as appears probable demands for currency at

Tientsin continue to be made upon him, My Lords would be glad

to be in a position to give him directions to meet such

demands by the immediate shipment to Shanghai of a sufficient number of dollars to enable him to meet the established requirements of the Chest for the next two months at Shanghai Tientsin and Wei-hai-wei, the needs at the two latter places being provided by the purchase at Shanghai out of the dollars so shipped of the exchange required.

mattostima.

My Lords would be glad if Mr.Long conours if he would telegraph to the Governor of Hong Kong asking him to give special permission to the Treasury Chest Officer to make the necessary shipment. My Lords would in the meantime instruc the Treasury Chest Officer to see the Governor on the subject|| and if satisfactory arrangements can be made to arrange for the shipment on the above basis. My Lords would be glad to have a reply at Mr.Long's early convenience.

I am, Sir,

Your obedient Servant.

мурастать

sir.

I bag to draw the attention of the Lords Commissioners to the present very high premium being charged in my account for

transfer of amounts to "ientsin, Wei-hai-wei and Shanghai, and

attach a list showing the advance in premium on various

transactions from 14% in August last tc 11% during the current

month. As this high rate is apparently without precedent, it

compels me to bring the circumstances to the notice of my Lords,

pointing out that in no way can I se, at present, a remedy, in

view of the variations in rates of exchange prevailing between

here and Shanghai.

The rate of the dollar here averages latterly 2d lower than at Shanghai, which accommts for the high premiums on transfers.

It would appear from the parity price of silver that forcme reason the Hong Kong dollar has been depreciated for some time about 2d below its normal value, which is undoubtedly a great consideration in cur local purchases. Also it would not

improve matters by selling Rills in the other ports cwing to the

present rates of exchange governing at Shanghai.

A

It will be noted from the list attached that the bulk of transactions are advances or finds to Mr.T.J.Bourne, War Office

Representative, in comertion with the raising of Coclie

Rattalions which may continue for some time, whereas the transfers

tc

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