54126/4/46
OUTWARD
TELEGRAM
16
Cypher (0.T.P.)
TO HONG KONG (912 M. Young)
FROM 9. OF S.. COLONIES
ว
Sent 2nd September, 1946. 19.50 hrs.
190
IMMEDIATE
No. 814 Secret.
Begins.
Please pass to Svans Thomas from Treasury.
My immediately preceding telegram
paragraph 2(1).
Consideration I had in mind was as follows:
1. Large holdings of Hong Kong dollars in South China might be temptation to Chinese exchang e control. These Hong Kong notes would not be easy to extract for C. N.D., but since we are not going to lond China sterling she may prefer this way of getting it to buying it for U.S. dollars.
2. On other side of picture, Chinese holders might think that their holdings would be safer from conversion into C.N.D. if they were in the form of
Ends. a Hong Kong Government sterling loan, Copies sent to:-
Treasury Foreign Office (F.E. Divn.)
Miss M.E. Ashe.
Miss Jeffries.