CO129-555-2 Estimates 1936 30-8-1935 - 29-1-1937 — Page 74

EARLY.

CONFIDENTIAL.

The Honourable,

Colonial Secretary.

Sir,

Enclosure No.3.

Queen's Building,

Hong Kong.

25th September, 1935.

74

I have the honour to acknowledge receipt of your

letter of the 19th instant, No.42/136/35.

Your letter was yesterday laid before a Meeting of the

Unofficial members of the Legislative Council, who request me to

reply as follows:-

The Unofficial Members have noted that His Excellency

The Officer Administering the Government is not prepared now to

fix exchange forward for the sterling såaries and they do not carry

that matter further.

Nevertheless, the Unofficial Members are most strongly

of opinion that, in the interests of the taxpayers forward exchange

contracts should, in any event, be fixed now to meet all sterling

commitments, other than sterling salafies for 1936.

They consider that the suggestion now put forward by

them is only in accordance with the best commercial practice.

The Unofficial Members cannot agree with the views

expressed in the last paragraph of your letter under reply.

The Unofficial Members' recommendation is put forward

in the interests of the taxpayers whom they desire to protect from

any possible loss owing to exchange either going below or being

stabilised below 1/8, and they feel, therefore, most strongly that

their advice on this point should be accepted by the Government.

The object of the Unofficial Members as explained in

my previous letter of the 18th instant, is not to gamble on the rise