4, MILLBANK,
1.21
WESTMINSTER,
LONDON, S. W. 1.
1st April 1927.
I send you copy of a letter and enclosures which I
have received from the General Manager of the P. & 0. Bank
regarding currency in Hong Kong.
I do not know whether you know Gubbay. He is a
retired Indian civilian, who held high financial and currency
appointments in India, and now represents that country on the
Imperial Economic Committee; so that his views carry some
weight.
I do not pretend to understand the currency system
in Hong Kong, but on the face of it the existence of so high a
premium on bank notes over the silver currency they are supposed
to represent seems rather queer and possibly even dangerous
in view of the chances that the situation in China may become
worse before it is better.
I am telling Gubbay that I have sent a copy of his
letter unofficially to the Colonial Office.
W. D. Ellis, Esq., C.M.G.
If /