NG CONFIDENTIAL.

FEC

2 B APRICO

12

50

GOVERNMENT HOUSE,

HONG KONG. 28th March, 1930.

3 om

on 62922329

Card (13

Document No.I. with annexures Nos.1.a. to

1.d.

happy lo enct to 40.

My Lord,

I have the honour to refer to Your Lordship's

despatch No. 312 of the 25th November last, asking

for a report on the currency and exchange situation in Hong Kong, and I now enclose a confidential print of

certain documents relevant to this question.

2.

The situation is one which for several

months past has engaged the serious consideration of the

Government and of the business community, including

especially the Banks of the Colony. Hatters approached

a crisis in October last while Sir Cecil Clementi was

in the Philippine Islands, and a report on the

situation as it existed on his return will be found

in document No. I. with its annexures in the enclosed

print.

3.

Sir Cecil considered that no advantage was

likely to result from reporting on the matter at that

stage.

The one-dollar notes were being gradually

withdraw from circulation, silver was accepted freely

in payment of accounts due to Government, and silver

dollars

THE RIGHT HONOURABLE

LORD PASSFIELD,

&c.

&c.

&c.

,

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