INWARD TELEGRAM
COPY FÜR REGISTRATION
FROM HONG KONG (Sir M. Young).
ansed by
TO S. OF S., COLONIES.
D. 9th September, 1946. R. 9th
18.
186
No. 990 Confidential.
Your telegram'No, 812,
09.45 hrs.
M
511126/4/46
Hatter has been discussed with Evans Thomas
and following represents our considered views on points raised.
器。 As regards possibility of inducing holders of Hong Kong notes in South Chins to subscribe to
Hong Kong loan, it 12 believed that consideratio
proportion of such notes being used for trade purposes,
though naturally largo sume are hoarded as (?hedging) ageinot depreciation of national currency. The Chinsae are masters of evasion and any offort of Chinese Exchange Go obtain posavasion of Hong Kong dollar holdings would not worry sufficiently to make them exchange their holdings Pes low interest of Hong Kong loan. it mit be realized chrt interest rates are at present very high indeed and that really first clase mortgage (corrupt group) (will) bring in 6% per annum, while mortgages against goods may bring in 1 or even 2% per monthe The large holders of Mong Hong notos in China ere not known and it would not be possible to get in touch with them except by some form of propaganda, which would undoubtedly not be viewad with favour by the Chinese Governmenta
3.!