59!
Kong. Opinion in the Colony was, however, definitely
against taking similar action, because extreme doubt was
felt as to whether the policy of the Chinese Government
would be effectively carried out and the new rate of
exchange would be maintained. The matter was considered
by the Colonial Office Currency Committee, a meeting of
which had been arranged in anticipation of the event, and
that Committee which includes representatives of the
Treasury, Bank of England and commercial Banking as well
as the Colonial Office and Crown Agents
would be best to watch events.
-
agreed that it
In order to keep a watch on the situation
special weekly reports were obtained from the Governor of
Hong Kong, and the Committee held several further meetings
during the next few months. By the end of December the
Committee were inclined to feel that action by the Hong
Kong Government was becoming necessary, but opinion in
Hong Kong was still definitely opposed to any action, and
it was not felt possible to insist upon it against local
opinion.
The situation continued more or less unchanged
until April, 1935. Meanwhile the Chinese Government had
succeeded in maintaining its policy, while the rise in the
price of silver accelerated in March, with the result that
Hong Kong exchange rose further to 2/6. At the same time
thanks to an understanding between the Banks in Shanghai
not to export silver, the depreciation of the Shanghai
dollar below its silver parity increased to 30%. By this
time