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During the last two months there has been a distinct
improvement in import business, and this is reflected in the
fact that whereas on 31st March last the premium of the Hong Kong
Bank note over the laying down cost of the British dollar was
These figures are based
7.964%. today it is only 5.642%. These figures
an the very lowest possible charges, namely Seigniorage in
London at £2.5/- per $1000 & 5 weeks' interest at 5% p.a. making total charges 3.477.7%.
The comparative positions just mentioned are, however,
based on the interbank rates on 31st March & today, but if based
on this Bank's official selling rates the result is a premium of 6.303% on 31st March & a premium of 4.284% today. It is
hardly necessary to point out that the P. & 0. Bank showed the
worst position, namely the premium based on the interbank rate.
In abnormal times abnormal positions arise, & the
remedy for the position complained of by the P. & 0. Bank lies,
not in arbitrary restrictions, but in a restoration of peaceful
trade with China.
I apoligise for writing at such length, but the matter
as you say, is a very important one, I would suggest that if
the Colonial Office wish for further information, they have
easily at call Sir Newton Stabb and Mr. A. H. Barlow, who will, I
feel sure, be only too pleased to give any information required.
Sir Newton Stabb was 14 years in the Head Office of this
Bank at Hong Kong, of which he was Chief Manager for over 10
years,