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forward for all the Colony's sterling commitments in 1936 at such dates and rates and in such instalments as the Chief Manager of the Hong Kong & Shanghai Banking Corporation may advise.
We consider that this suggested new Goverment departure of fixing exchange in advance is justified by the special financial circumstances of the Colony at the present time.
Moreover, what the Unofficials suggest is entirely in consonance with the opening words of paragraph 2 of the Circular despatch from the Secretary of State for the Colonies dated the 16th July, 1932 (which you sent to me on the 14th instant) dealing with the reduction of salaries of Civil Servants.
In those opening words the Secretary of State says:- "in the first place I wish to lay it down that Budgets
must be balanced".
Would you kindly send an early reply to this letter because the nature of your reply will affect the views which the Unofficial Members will express on the second reading of the Budget Bill.
I am,
Sir,
Your obedient servant,
sd. H.E. Pollock.
Senior Unofficial Member.