CO129-365 - Governor Sir Lugard - 1910 [1-3] — Page 112

nclosure 4. Enclosure 5.

I

107

together with my comments upon it. I also attach a Memo-

-randum by myself, dated the 22nd. November, 1909.

10.

latter

I discussed the proposals contain-

-ed in this Memorandum with Mr. J. R. M. Smith, Manager

of the Hongkong and Shanghai gank confidentially and I

found him fully in support of them except as regards the

measure of prohibition which is

foreshadowed and which

does not form a part of the scheme which would be

immediately put into operation. Its advisability can be

discussed later when the time arrives. My Memorandum was

circulated to the Executive Council and on the 5th. of

January, 1910, the Council unanimously advised the adoption

of the measures in so far as rehabilitation by means of

purchasing Hongkong Subsidiary Coins in the open market,

in the manner auggested, is concerned, and at a cost not

exceeding $1,000,000. I have therefore the honour to

request Your Lordship's sanction to take immediate steps

to this end.

11.

The course therefore for which I

ask Your Lordship's sanction is to purchase with a view to

demonetization whatever subsidiary coin is obtainable up

to an agreed date at the highest discount obtainable, and

to meet the loss incurred which it is hoped would not

exceed