CO129-558-11 Mission of Sir F. Leith-Ross to China- proposals for a Hong Kong - China customs... 29-9-1936 - 30-12-1936 — Page 95

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C. O.

in 1929-1931. This should be facilitated

Mr.

Mr.

Mr.

Sir C. Parkinson.

Sir G. Tomlinson.

Sir C. Bottomley.

Sir J. Shuckburgh.

Permt.. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT.

FURTHER ACTION.

by the existing co-operation in financial

matters, since the demonetisation of

silver in both China and Hong Kong and

the establishment of managed currencies.

These events have also rendered

less probable the adoption of a narrow

and "provincial" attitude on the part of

Hong Kong, the close economic inter-

dependence of Hong Kong and especially

South China having been strikingly

emphasised by the almost automatic action

of Hong Kong in following the Chinese

silver policy; and since then by the large

and

speasing importance of the new

A

Hong Kong currency in the economic life of

the Kwangtung Province. The problem is an

imperial one, and failure to meet the

Nationalist Government in its present

conciliatory/mood might in the long run

entail results which would dwarf any

concessions which are at present likely

to be required of Hong Kong.