CO129-574-11 Alteration in dates of the financial year 21-9-1938 - 28-3-1939 — Page 16

Extract from a letter from Mr. Caine to Mr. Clauson

dated 21st September, 1938.

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Part of my reason for replying so quickly is to

ask you two questions, one trivial, the other not so

trivial.

First, after experiencing the inconveniences of

drawing up Estimates in the middle of the hot weather,

which is also the height of the leave season, I suggested

changing the financial year to 31st March. (It wouldn't

help me, because no change could be effective till the

1941 Ests. but it would be a bequest to my successor).

N. L. was enthusiastic, H.E. lukewarm and he asked me to

find out privately if the C.0. would have any views.

Taking Hong Kong conditions by themselves I am sure it

would be right; but it might be regarded as introducing

further unnecessary diversity into Colonial statistics.

Let me know what you think; if the C.0. is neutral I will

pursue it further, if you dislike it, I shall drop it

entirely.

Secondly, what do you think of the prospects of

our tapping the Exchange Fund in a year or two if currency

conditions remain as at present? You know the facts –

present surplus about $20,000,000, income about $5,000,000

p.a.; the "risk" is appreciation of the dollar which is

not exactly likely. I occasionally remind the Advisory

Committee that we might go up as well as down; last time

I suggested it they said "over our dead bodies". (The

fact is thay are all enormously overbought; which is

worth bearing in mind if we ever do have to take their

advice about revaluation).