an admirable and most useful outlet for such

surpluses; particularly since, on the showing so far,

revenue for 1939 is

equivalent to about 109 per cent.

Cory (2) reza. 15117/18/39

(Eem. Suret)

جم

d

of the same period for 1938. So far only the

principle is involved, since the Governor has not

consulted the Executive Council; but we can ?

approve the principle and authorise discussions as in

paragraph 9 of the despatch.

And register copy

of this despatch on the Hong Kong Exchange Fund file

(15117/18/38 Economic Secret.)

A.N. Salsworthy 17/3

I think that this proposal is

ingenious & sound,

any

proposal

would be which came from the Caine,

whois ofcourse the author ofit, but the position of

Bu Jundio not what it was on the 30th of June. Since then there has been

a surious depreciation in the value of securities in that it which, if I remember nightly withsout nearly the whole of the second half-years income. This cannot of course go on indiginitely, bubitnightgoon

a bit longer.

I suggest Bat you sh? reply that while we agree in principle with the scheme, which draerves high commendation, the present

sin site is so unsettled, in particular the danger of further depress. -ations in the value of the funds decurities cannot be excluded. In Bese cina

we will not object

A

to be proposed bring ventilated, but that it must rifinitely

regarded

يه

a proposal only which

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