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I think that in this way of presenting the case, we are possibly making too much of the special point of increased expenditure resulting from the adherence to the rtificial official rate of exchange for Chinese dollers. On the figures given by Mr. Foster Hall, the income available is insufficient to meet expenditure - even without taking liabilities inside Free China into account.
If
that is so, the additional liabilities resulting from the special rate of exchange are of comparatively minor importance, since they only increase the demand on the Treasury and are not the sole cause of its being necessary to make a demand.
I would therefore approach the matter more generally and bring in the point about the Chinese rate of exchange only by saying that because of the existence of thet arrangement, there is a further increase in the liabilities, but that if the Treasury accept responsibility for meeting the deficit, it will be for them to consider whether any action is possible to reduce the sterling calls resulting from the expenditure in China.
•
I think also that it would be desirable to get a more up-to-date estimate from the Crown Agents of the probable future income of the Exchange Fund. There have been some heavy payments out of the Exchange Fund in the last six months, and there are still substantial sums to be paid out against the redemption of Hong Kong notes in China, so that the future income may be appreciably less than has been received in the past. Mr. Forrest cen no doubt give. en estimate of the liabilities still to be met.
Finally, I think we should approach the Treasury on the basis that there has always been a tecit understanding that they would come to the
rescue when Hong Kong's own resources were exhausted, and I should put it to them now as a matter of living up to previous commitments rather then as a new request for consideration.
i
کے بچے
5.8.43.