CO537-(1262-1649) — Page 227

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CO 537/1374

THE NATIONAL ARCHIVES

restrictions Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet

Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copynght

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M. Beaten

2018/46

I attach a draft telegram in reply to No.22.

As Miss Beaton says, I did have a word with Mr. MacDougall about this and have drafted a telegram in the light of my discussion with him. I should add that Mr. MacDougall is or the opinion expressed in para. 3 of (22) that the banks will "bitterly oppose any attempt at revaluation". He explained that no formal consultation had taken place with the banks on our proposals but on various informal occasions Mr. Morse had made it clear that he had now become emphatically opposed to the scheme or which, of course, he had full particulars last March. There seems no alternative but to get Hong kong Government to talk further to the banks in the light of our telegram at (18) which definitely envisaged (see para. 6) that they should do so. If their talks do not lead to satisfactory results then we shall have reached complete deadlock

so far as Hong kong is concerned.

tana

21st August,19.6.

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Ref.:

CO 537/1374

THE NATIONAL ARCHIVES

restrictions. Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet. Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copynight

As Mr. Emanuel says it was agreed at the discussion which lead up to our telegram at No. 18 that the Hong Kong Government should put the proposals made in that telegram to the banks and I do not think that we should be deterred from requesting them to do this by the Governor's prophecy that the proposals will be bitterly opposed by the banks. The proposals are the result of intedepartmental agreement and I think it has been the unanimous feeling of all that they represent the nearest thing we can get to a just solution - at least as far as can be judged from the information we have here. Even though, therefore, we may eventually agree to modify them as a result of bank representations, I certainly do not think we need have any hesitation in asking the Governor

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