CO129-554-5 Commission of Enquiry into the Hong Kong trade depression- correspondence and report 27-3-1935 - 11-8-1935 — Page 13

26758/34

COPY

Head Office:

24

London, B.C.3..

lary Axe,

B.C.3.)

My dear Crowe,

DODWELL & CO. LTD.,

Hongkong.

14th June, 1935.

13

Pelham has shown me confidentially him

excellent report on Economic Conditions in Hongkong and

South China and I have no doubt he has ere now sent you the

Report of the Economic Commission set up by the Hongkong

Government, on which he and I had the honour of serving.

These two reports should give you some idea

of the alarm which it is impossible not to feel in regard to

the future of the Colony and of British trade generally with

South China.

The situation is very much aggravated by the

fact that we are the only spot in the world still trying to

The Banks call our currency trade on the basis of silver.

"honest" partly no doubt because, while it's jumping about according to whether the American Silver Senators happen to be "longs" or "shorts", they are doing a mighty fine trade with the Exchange speculators. So far as the unhappy mer- chant is concerned, however, this "hoest" currency is playing havoc with him; the present high level depreciates all hie

Indeed, I hav import stocks and paralyses his export trade.

no hesitation in saying that unless means can be found to give a far greater measure of stability to silver, Hongkong must go off it, but until the U.S. Dollar and terling are stabilised, it is not much use linking up with Sterling or any other currency. se ought of course to be on basis as China, for our present premium over hanghai, i.e.

/Hongkong

e same

Sir Edward Crowe, K.C.". G., Department of Overseas Trade, London