CO129-446 - Others & Individuals - 1917 — Page 273

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Bo greatly that Sir George may now, we hope, be disposed to withdraw his objections. As you know, the United States Government have agreed to sell us, at the fixed price of a dollar per fine ounce, & very large quantity of silver present we have a practical promise of 200,000,000 ounces. One condition is that while we are buying from them we must not pay a higher price anywhere else. The same condition applies to purchases by the Treasury or other Departments of the British Government, and by the United States Act the United States Treasury is required to replace the silver sold to us at a price not exceeding the same figure. Accordingly for a very considerable time to come this price is likely to remain as to all intents and purposes the fixed

and price for all silver purchased by the British, Indian, American Governments. How long a period the assistance to be given by the United States Government will tide over the Government of India we cannot say, perhaps a year or a year and a half, perhaps more, but we are very anxious now to make our position secure when that assistance comes to an end, and we are buying as much as we can in addition to what we are getting from the United States Treasury. We should be very glad indeed, therefore, if the Colonial Office would consider

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some scheme which would have the effect of liberating for us part of the reserve of silver now held against the

notes Hongkong Shanghai rules, and if in addition it meant the

liberation of further silver from South China either

JË TRAN immediately or in the proximate future it would be doubly welcome. Do you think the matter could be reconsidered? I have little doubt that a scheme could be devised to the Hongking mutual advantage of the Hanging Government and the Government of India.

A point deserving of consideration is that the tremendous currency difficulties which the Government of India have had to face now for some time are the outcome of India's meeting enormous expenditure on behalf of the Imperial Government during the war, the expenditure being in rupee currency but the repayments in sterling. It is a matter of Imperial importance that everything possible anould be done to deliver India finally from her present plight. The Treasury have fought nobly for us in the United States. Could the Colonial Office do something for us at Hongkong? If the war continues much longer it can safely be predicted that inconvertibility will again be imminent in the comparatively near future without the possibility of the intervention of a deus ex

mashina