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or fall of exchange but to ensure, so far as possible, the balancing

of the Budget at a known point so that no further call will be made

upon the taxpayers even if exchange goes to or is stabilised below

1/8. With respect, we can see no justification whatever for the

Government exposing the taxpayers of this Colony to an avoidable

risk of additional taxation.

An early answer will oblige,

I am, Sir,

Your obedient servant,

(signed) H.E. Pollock.

P.S.

Although for obvious reasons of secrecy connected with the

fixing of exchange this and our previous letter are marked "Confidential

the Unofficial Members reserve to themselves liberty to refer to

these letters and to the Government replies thereto hereafter in the

Legislative Council, if they desire to do so.

(intd.) H.E.P.

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