CO129-549-1 Remittance of funds between Hong Kong and London 12-2-1934 - 14-2-1935 — Page 45

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a rate for transfer between Treasury Chest Officer and

Colonial Treasurer.

However, the main obstacle, as I have pointed out,

is that the Colonial Treasurer's policy of remitting sterling

to London under the most favourable circumstances as regards time, rates and financial position, is directly opposed to

the conditions of regularity regardless of market prospects

under which the Treasury Chest Officer sells his sterling.

The interests of the Treasury Chest Officer and the Colonial

Treasurer are, therefore, opposed.

By way of illustrating the points set forth in

paragraph 3 a few actual quotations are appended in connec-

tion with recent transfers of money by the Treasury Chest

Officer and the Colonial Treasurer.

On 2nd August Bank's opening selling rate was 1/5; business done in the money 1/513. In the afternoon I took

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1s/6d for £50,000. Now I had been on the look out for a

good rate for over a fortnight but could not get anything approaching 1s/6d so I kept off the market, as the last

remittance I had made on 4th July was at 1s/6d and the rate

had dropped. My broker had instructions to keep me informed

of any change and to tell me immediately 1s/6d was obtain-

able. I was repaid for waiting but this is diametrically

opposed to the Treasury Chest Officer's policy. On the

14th August the opening selling rate was 1s/63. Best market

rate was 1/

1/611. I sent out the broker with enquiries for

1/61⁄2 for £50,000 and got it. On September ist the opening rate was 1/6, market rate was 1/613 and I remitted £20,000

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at 1s/7d. Since the 1st September the market has weakened

and 1/7d is no longer obtainable.

The Treasury Chest Officer sold £65,000 on 17th

August and obtained 1/642 on £35,000 and 1/617 on £30,000.