CO129-550-1 Estimates 1935 14-9-1934 - 15-9-1934 — Page 23

(Mr: Pader's minute gives a careful and

Jasl.

most helpful summary of the position.)

22

I am not very closely in touch with the details

of finance in Hong Kong, but I agree generally

with the preceding minutes. The situation is

in some respects difficult; but there is nothing

so far to be alarmed about. The policy they are

working on seems sound enough, for the present;

and there appear to be several ways in which they

"

A

can meet a worseing position, if that should unfort-

unately develop.

I wish they were somewhat stronger on the " currency"

and general finance side. So far, we have had no

help at all from the local people as regards the

currency position which has recently developed

owing to action by the USA and China; and one

rather fears that they are dominated by the

Hong Kong and Shanghai Bank in their views as to

that, without having an independent judgment,

and without having anything but the " Bank" view

before them. The Currency Comm: feel, I think,

that the problem is one they cannot solve, without

clear local advice as to the repercussions; they

shrink from recommending definite action, without

any local knowledge as to the position, and the

probable effects on trade and local industry.

The Comm: now sitting may lead to something.

The 5th: December, 1934.

5/10/14