CO129-549-1 Remittance of funds between Hong Kong and London 12-2-1934 - 14-2-1935 — Page 51

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needs of the Navy and Air Force. My Lords understand

that homeward remittances by the Hong Kong Government

during a corresponding period have generally been some-

what in excess of £400,000 a year, and that they may be

expected in future years to be of the order of £350,000

a year. Under the arrangements made in the 1923-24

correspondence, only the difference between these amounts

would have had to be negotiated on the exchange market:

but it appears that those arrangements have, at least in

recent years, not been in operation. In consequence the

whole amount of the homeward and outward remittances of the

two Governments has been so negotiated.

While, on this or that isolated occasion, either

the Colonial Government or the Treasury Chest Officer may

have obtained a specially favourable rate of remittance, it

is evident that co-operation between the two Governments is

desirable on general grounds, and that by such co-operation both the Treasury Chest Officer and the Hong Kong Government,

bath would benefit by reducing the average cost of remittance.

My