CO129-549-1 Remittance of funds between Hong Kong and London 12-2-1934 - 14-2-1935 — Page 17

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between Hong Kong and the Treasury Chest Officer

would result in a loss to Hong Kong and a gain

to the Treasury Chest Officer. There is not the

'one pocket' principle involved as the Hong Kong

funds are quite distinct from United Kingdom funds.

We have no evidence as to the rates obtained by the

But her end bij Treasury Chest Officer (1.e. whether more favourable

than the 'paper' rates) on which to base any com-

parison but if he secures a more favourable rate than

the 'paper' selling rates for sterling, i.e. lower

than the 'paper' rate, it naturally accentuates the

difference between them. As Hong Kong apparently

secures a rate more favourable than the 'paper'

buying rate, (i.e. higher than the 'paper' rate)

apart from this question of loss which Hong Kong

naturally wishes to avoid, Hong Kong also obviously

is not desirous of cutting out the Hong Kong and

Shanghai Bank and so imperilling its relations with

that institution, with probably an additional

resultant loss (free services plus 1 per cent

interest on its balances).

(The above minute was originally prepared

by lir.Palmer in December, but has been delayed due

to pressure of work on Estimates etc., and is now

revised).

31-1.55

46

In

134/1135

the absence of the rates abwhich Hong Kong remittances home

-See Leo. 11 -

Sleaving

no comparison

whether

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Car

made

be

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a

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would