CO129-449 - Governor Sir May & Acting Governor Claud Severn - 1918 [7-9] — Page 482

AD

Von will see that in the scheme

laid before Addis I have whit the

advantages to the Bank. I now with

hat in return for carrying out Addin's ouguind

demand (which I think we sat have &

'There wit be the 'lowny advantages. I india

way there

weet in out anyway

A

(1) t'he will secure a large suffly of silver incrediately at

hear some ¿

suffly

(2) It will be posith at once to count the silve

part

Judia's tenure

(3) It is not cuffested that interest that be paid

the loan

Th

(4) The sclver will not necessarily have to be returned in dive (5) the silver can be held in the reserve in the form of dolland for eventual chum, though they can, if necessary, be humed into Enfers (the silver is goo fine & therefore convenient

Comage into supers)

Whether the cervement of the 7 mestion Litters. from 17. to India ed be kept secret is doubtful. Ordinarily is could wit, but with the supplier passing through sitlong from America

it might be posible. Addi's proposes to crevalt HK. on this point eventualy.

J

Au

sending a similar letter to Abraham

F. 10963.

My dear Collins,

INDIA OFFICE,

LONDON, S.W.1.

27

September 1918.

I am afraid that the scheme which you suggest would not really help us.

477

It is based on the idea that our special need is rapid replenishment of our supplies. Even if this were the case, it would do no good to let China come into the American market at once for 10 million ounces on condition that she lent us 7 millions, repayable at 3 months' notice.

Actually, with what we have and what is coming forward, we are in a fairly satisfactory position for the present; and our business is to look forward to, and try to provide for, the much heavier demands that we shall have to meet during the winter, when perhaps new supplies may also be less abundant. Against these future needs we have to try to build up a real reserve, not a borrowed one. As far, therefore, as we are concerned our interest is that China should remain out of the market while we buy for our own account; and no substitute for this would be to us of any real value.

It is very hard to judge how China's needs compare with ours. The evils which Sir C.Addis anticipates from failure .Collins Esq., C.M.G.

to COLONIAL OFFICE.

pę

Ramay

yours sincerely

for AE Colema

but

Since I wrote the above Beckett makes the

Endin

as in my scheme ofleft in the costot, If the Athey fot at the disposed of the Dott.

spotion that the

isation the

: