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sumerrily to uthorized de...lors, who include all the larger banks, both British and foreign, in the Colony.
Those
Authorized dosiers act on instructions from Governments to
the purposes for which exonangs may be sold and speculative Transactions and transfers of capital are absolutely forbidden. Secondly, Government has ruared the surrender of foreign
exchange holdings but this requirement has been limited to
British subjects because of the difficulty of applying at more
generally in this international community of ours. Such
exchange transferred to Government is of course paid for in
Hong Kong dollars or sterling. We have taken power also to requiro any British subject to surrender to Government any
foreign exchange which he may subsequently acquire but it 13
not the intention to apply that to exchange acquired in the
ordinary course of business. Such exchange is normally sold
to one of the Luthorized doolers and through the control of sales of exchange it thereby remains within the control of the sterling system provided that we have the full co-operation
of the banks concerned. I should like to take this opportunity to state my belief that we shall get that co-operation from
all the banks operating in this Colony and my gratitude to those
Danks for the help they have given to Government so far and
the patience with which they have borne with our somewhat
fumbling first attempts in this unfamiliar field of control.
Because of our
uliar circumstances we have had to
make certain exceptions even in the field of sale of exchange.
Both exports of Hong Kong and Chinese bank notes and
tne
remittances of small sums to/interior of China are either
completely free or subjected to only a loose control. In
view of that the authorities at home have felt obliged to
refuse absolutely unrestricted dealings between London and
Hong Kong lost there should be a leakage of funds from London
through Hong Kong.
e Lave however been assured that the