CO129-381 - Governor Sir Lugard - 1911 [11-12] — Page 34

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myself pronounced against the principle involved. It

would in these circumstances I fear be necessary to

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pass the Bill by 'force majeure under your orders

and I think it not improbable that a petition would

be got up to ask His Majesty to disalbow it. Since

the matter is (as you point out) essentially secret,

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I have not been able to consult my Executive Council.

nor to ascertain what public opinion would be on the

matter, but I feel convinged that my forecast is correct.

In these circumstances I would humbly and respectfully

suggest that the scheme should not be tried,

would venture to ask your reconsideration of the

alternative scheme set out in my confidential despatch

of the 20th. January, 1910, and which was approved by

all whom I consulted here.

5.

and I

Since writing the foregoing part

of this despatch I have heard that in consequence of

the unrest in China the Hongkong dollar which a few

days ago stood at 2 per cent discount in Shanghai has

now risen to 10 per cent premium, and that the Chinese are buying all the Hongkong dollars they can in the absolute assurance that they can rely on their stability, while they no longer place any reliance on their own

currency or notes. I submit respectfully that to demonetize British subsidiary coinage would in these

circumstances deal a regretable blow at British prestige,

and would probably create a panic at Shanghai and

dislocate trade. I am told that in the last few days

many million Hongkong dollars have been sent to Shanghai

and elsewhere from Hongkong.

I have the honour to be,

Sir,

Your most obedient, humble Servant,

Mangates

Governor, eto,.