(Mr: Pader's minute gives a careful and
Jasl.
most helpful summary of the position.)
22
I am not very closely in touch with the details
of finance in Hong Kong, but I agree generally
with the preceding minutes. The situation is
in some respects difficult; but there is nothing
so far to be alarmed about. The policy they are
working on seems sound enough, for the present;
and there appear to be several ways in which they
"
A
can meet a worseing position, if that should unfort-
unately develop.
I wish they were somewhat stronger on the " currency"
and general finance side. So far, we have had no
help at all from the local people as regards the
currency position which has recently developed
owing to action by the USA and China; and one
rather fears that they are dominated by the
Hong Kong and Shanghai Bank in their views as to
that, without having an independent judgment,
and without having anything but the " Bank" view
before them. The Currency Comm: feel, I think,
that the problem is one they cannot solve, without
clear local advice as to the repercussions; they
shrink from recommending definite action, without
any local knowledge as to the position, and the
probable effects on trade and local industry.
The Comm: now sitting may lead to something.
The 5th: December, 1934.
5/10/14