Copy.
A/1607
By Hand.
54109/41
43
The Crown Agents for the Colonies,
4 Millbank,
Westminster,
London, S.W.1.
(Abbey 7730)
28th May, 1942.
67
Important.
Dear Monson,
With reference to our conversation today I enclose a statement showing the approximate income and expenditure of the Malay States, Straits Settlements and Hong Kong. For this purpose it has been assumed that the income from the Malayan Currancy Fund and the Hong Kong Exchange Fund will be available.
It will be seen that as regards the Malay States there is sufficient to cover all the known liabilities and about £300,000 a year to spare to meet any special payments.
In the case of the Straits Settlements there is sufficient to meet the known liabilities with about £100,000 a year to spare for special payments; but there would not be enough to meet the interest on the Singapore and Penang Municipal loans if Straits Settlements were to assume responsibility for these. If nowever the capital of the funds were used towards meeting the shortage (an undesirable course) it is estimated that it would last for about 17 years, and for this purpose it would be necessary to use the Straits Settlements opium Fund, and the surplus Balances investments, in addition to the proportion of the income from the Currency Fund.
As regards Hong Kong, there is sufficient income from the Exchange Fund, providing there are no large scale currency redemptions. If as a result of such redemptions the Exchange Fund were reduced to £10,000,000 (it is at present £16,800,000) it would still provide sufficient interest to meet all know liabilities.
Yours sincerely, (SIGNED) J. GOLDBURG.
W. B. L. Monson, Esq.
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