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silver basis, would have an adverse effect on the
business of the Colony and would tend to drive a
large amount of it away. This is argued very ably
in several memoranda, more especially in that submitted by Mr. Russell on page 101 of the report.
has
The Committee/adopted this view, and I am inclined
to agree with it. At the same time, I do not
think that this view should be accepted without
further examination. China has accepted the
possibility of adopting a gold standard, but it is
very difficult to say when she will be able
to
attain this end. The Kemmerer Report, recently
issued, is an interesting document: it recommends
gradual adoption of a gold basis province by
province, and it may be many years before the
proposals can be completely carried out.
7. I do not think that there can be any
question that, if China eventually adopts a gold
basis, Hong Kong must certainly do the same, and it
is therefore imperative that we should be prepared
for such a change over. I should be glad if the
necessary advice may be obtained early as to the
steps which should be taken in anticipation of such
an eventuality.
8.
Assuming that it is decided that Hong Kong
must retain its existing basis until such time as
China adopts a gold basis, it is necessary to
consider whether the present system can be improved.
It appears doubtful whether, apart possibly from
attempting