23
I agree generally. Revenue has been remarkably
stable over a most trying period for the world
generally, and a particularly trying period for
China. The drop came much later than it did
elsewhere, but was relatively quite unimportant.
The stability of the revenue has of course an
obvious influence on the amount of the surplus
which should be held. I'd like to se H Kong
With a higner balance than the, have; but I agree
with Mr: Gent that this is hardly the moment for
saying any thing as to that. I agree also as to
the enquiry regarding the desirability of
raising the balance of the 1934 loan; on the
figures, H K cannot carry on for long with their
present system. The working balance alone must be
in the region of 3 million dollars; and there will
be other items--particularly in present circumstances--
amounting in the aggregate to a considerable sum,
locked up in unallocated stores. As I said before,
I do not understand how they can carry on, in
existing circumstances, with advances from surplus
funds.
k. It is anyboɑy's uess as to what the permanent
effects of the Sino-Japanese conflict will be on
H.Kong; but temporarily they should benefit.
If I had to make a guess, I should be quite hopeful
as to the more permanent future also.
The 1st: December, 1937.
21/10/17
It is not my business; but--as one who was
intimately connected with all the ramifications of
the drug traffic for over fourteen years--I hope
very much that H K will take effective measures