Enclosure No.5.
COPY.
Queen's Building,
77
Hong Kong 27th September, 1935.
Early.
Confidential.
No.42/136/35.
The Honourable
Colonial Secretary.
Sir,
In reply to the second paragraph of your
letter of yesterday's date, I regret that the P.S. in my letter
of the 25th instant was misunderstood. That P.S. was only
intended to refer to a Legislative Council debate next year,
in the event of our Budget then becoming unbalanced.
The Unofficial Members of Council particularly
desire to avoid just now any public reference to the possibility
of the Government fixing exchange forward, in case the Hon.
Colonial Treasurer should hereafter, in view of developments
in the Exchange market, advise the Government to review its
present decision in regard to fixing exchange forward for its
1936 sterling commitments or some of them.
I am, Sir,
Your obedient servant,
sd. H.E. Pollock.