14

officers at rest on this point as far as possible,

and if Treasury will not agree to the Governor's

proposal, I think that they should certainly be

pressed to agree to an undertaking that, if the

Hong Kong dollar depreciates in terms of sterling

Say? by more than 10, the question of an exchange

compensation allowance should be considered.

Alternatively, it might be possible to persuade

Treasury to agree to a fixed rate of exchange for a

limited period, say up to 5 years, after which the

position would be reviewed.

5 April 1948.

with 1.2. Stability

Lappe Therm

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