CO129-412 - Governor Sir May - 1914 [7-8] — Page 441

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A CONFIDENTIAL.

37798

RECO

Rus 2 OCT 14

431

GOVERNMENT HOUSE.

HONGKONG.

15th August, 1914.

'July, 1914.

August, 1914.

sir,

632784

In continuation of my confidential despatch of the

22nd July, I have the honour to transmit the enclosed copies of two interesting reports by His Majesty's Consul-General at Canton on the redemption of the notes issued by the Kwangtung Govern-

ment.

2.

The accuracy of the official estimate of the amount of these notes in circulation came as a surprise to me and, to every one, I think, who had enquired into this matter. With

regard to the small number of forged notes presented for redemp- tion, however, it must be borne in mind that as tenderers of such

notes were held responsible for their possession a very great

number of forgeries may not have been presented.

3.

It is not for me to express an opinion upon Mr.

Jamieson's strictures on the action of the Hongkong and Shanghai

and Deutsch-Asiatische Banks, but it is right that I should say

that the Manager of the former institution denies that his Bank

collected large parcels of notes when redemption began. His ver-

sion is that the Bank of China by throwing obstacles in the way

of encashment of the new notes issued in exchange for the old

notes, (and it is not denied, I understand, that the cashing of the new notes was at the commencement discouraged), shook the confidence of the public in the new issue and induced a desire for exchange of the notes against silver which might never have

THE RIGHT HONOURABLE

LEWIS HARCOURT, M.P.,

&o..

&c.

&C.