FROM
OOFT FOR REGIST
54023/
A
RECUSED
10 SEP 1940
9.
17
C.
HONG KONG.
11.45.hrs.
CONF. CODE TELEGRAM
0. A. G.
D. 7th September, 1940. R. 8th
No.555.
6.
Your telegram No. 449.
Northcote's
suggestion has been considered by Exchange Fund Advisory Committee which regrets that cannot recommend placing at the disposal of His Majesty's Government any portion of Exchange Fund as such action would be liable to misinterpretation by the Chinese and seriously demage credit of the Colony. Committee however recommend free gift to His Majesty's Government as from 1st January, 1940, for period of the war of £200,000 (sterling) per annum from profits of exchange fund provided that nett increment Sudoes
does not fall below that figure in which case the nett Pncrement only would be paid. Executive Council concurs in this recommendation and I accordingly make the offer on behalf of the Colony es part of its war contribution to the United Kingdom Exchequer.
lopy
In this connection I venture to refer to your telegram No. 455 regarding evacuation expenses.
13139/11/400 J.S.