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need all the resources they can obtain in the currencies of thos e
countries. The first objective of exchange control measures is
therefore to secure as far as possible that foreign exchange
which may be held or may be acquired in the future by residents
in the United Kingdom and the other parts of the empire whose
currencies are on a sterling basis should be made available to
In their full form the necessary measures
the Government.
include the taking over by Government of all sums held in foreign
currencies by residents in the countries concerned and the
surrender to Government of all sums subsequently acquired by
such residents whether as interest on overseas investments or as
the result of the export of goods to foreign countries. To
control the surrender of the proceeds of exports a system is
introduced by which exports are only permitted by licence which
requires such surrender as one of its conditions Having ot
control of all the available foreign exchange resources the
Government then secures that they are used only for purposes
which are considered essential or desirable by limiting
purchases of foreign currencies by the public to authorized
dealers who are instructed by the central authority as to the
purposes for which exchange may be sold. This again is backed
by a system of import licensing which requires the approval of
some Government authority before any imports can be admitted.
As yet a further measure, direct steps are taken to prohibit
absolutely the import of commodities which are regarded entirely
as luxuries. The circumstances of Hong Kong and particularly
the great entrepot trade and financial business upon the Colony
lives render impossible or at least highly dangerous the
adoption here of the full measures of control adopted as above in
the home country and elsewhere in the British Colonies.
measures we have taken are, therefore, only as follows.
The
First
we have limited purchases by the public of foreign exchange