silver basis and has at present no Government
te issue. Why should not the Government of ong Kong issue dollar notes on behalf of the overnment of India? They could be issued against ollars taels or silver bullion, Idfof the total
receipts could be held in dollars at Hong Kong for encashment of notes, and the other half could
te sent to India. I think in this way a very large amount of silver could be diverted from South
ina to India on the most favourable terms. We
ave at present under our hands 15 million British Collars which could be exchanged I think for the notes I propose indeed if the scheme were approved see no reason why half the whole amount should not
to India at once.
—
You could, if you liked, send your own officer to Hong Kong to control the issue. If hereafter the Covernment of India wished to hand over the issue en- tirely to the Hong Kong Government, this could probably to arranged by your giging us rupee securities equal to the amount of silver you had had for nothing.
Alternativa Peckett suggests that the issue ould be made entirely by the Hong Kong Government and alf the silver proceeds sent to India in erchange for rupee securities. I am not sure that this is not an
improvement
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