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instituted for the welfare of Chinese emigrants who embarkba from Hongkong, and that the Registrar-General had for the last two years been constantly enquiring and endeavouring to amelior- -ate their position. His Excellency disliked contracts but is of opinion that they were often beneficial to the emigrants by binding the employers to just terms. Only today a boarding house licence had been cancelled because the licensee had forcibly detained two youths who were unfit for emigration. We shall welcome any suggestions which you may have to make on this subject.
4.
His Excellency asked whether the Viceroy had written as he had promised, to urge the Peking Authorities to treat the Kowloon Canton Railway as a business concern for pro- -fit, and generally speaking to support our terms in the Work- -ing Agreement. You said you did not know if he had yet written but that you would remind him.
5.
His Excellency pointed out that, if the pro- -posed currency reform is effected, and dollars are made the standard coin there would be a great redundancy of 20 cent pieces. These are already at 7 per cent discount and would then assuredly fall to demonetization value e.g. 15 per cent. This would involve serious difficulty in Canton and also in Hong- -kong. It would probably in that case be necessary for us to prohibit their circulation here. His Excellency suggested that you should point this out to the Viceroy and urge that no more should be minted. You informed us that recently some were minted to meet the notes of an insolvent Bank and His Excellency pointed out that the only proper course was to have a Reserve fund for all note issue.
6.
His Excellency pointed out that we have a law against the publication by any Hongkong paper of Articles likely to cause unrest in China and that the *Chung Kwok Yat Po* was now being prosecuted under this law. His Excellency would be glad if the Viceroy would let him know of any articles of which he complained; meanwhile it was unjust to prohibit the circula-
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