CO129-316 - Governor Sir Blake - 1903 [1-4] — Page 626

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Memorandum about appointing a Commission to inquire into

the Currency of Hongkong.

At a special meeting of the Hongkong General Chamber of Commerce to consider this question, I was invited to give my opinion from a Banker's point of view, and my remarks are recorded as follows :-

"Looking at the question more particularly from an exchange and financial "standpoint it must not be forgotten that a large portion of the internal trade "between North and South China is financed through Hongkong, and that practically "the whole of the great trade of Canton and South China with other countries is at "present centred here; the possession and retention of which is of vital "importance. Currency flows to and from Canton freely according to the movements of "trade and the state of the money markets, and I am strongly of opinion that the "adoption of a monetary standard in Hongkong different from that of China would not "benefit this Colony as a great commercial centre, but would inevitably result in "that all important trade gradually leaving Hongkong*

I fully confirm the above expression of my views.

(1) The island of Hongkong produces nothing, and practically bas no manufactures. It derives its commercial importance from being a free port under the British flag and an entrepot and distributing centre for the south of China and adjacent countries; and in particular as a base for the foreign trade of Canton, which City is only 90 miles distant.

(2) Though the foreign trade of Canton is of vital importance to this