T.C.194/51
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date 11
·June, 1951.---
No. 66 3 Confidential.
B5
(1)
1951.
My Confidential despatch No.8 of the 27th January,
Essential Commodities Equalisation Fund.
In paragraph 8 of my above mentioned despatch I proposed the establishment of a fund which would be available to meet possible losses on Government's trading in essential commodities. You conveyed your approval of my proposal in paragraph 4 of your Confidential despatch No.62 of the 9th
(4) March, 1951.
2.
I regret that when making my proposal, it was not made clear that the profits earned by the former Department of Supplies and Distribution included a sum derived, not from trading in essential commodities, but from the financing of the Colony's trade with Japan.
3.
In the normal course of events, the continued financing of such trade should show a steady profit, and there should be no need to make provision against a possible loss. Nevertheless, if the present negotiations for a new payments' agreement with Japan result in the inclusion of Hong Kong within a sterling area arrangement, there is a possibility that the resulting liquidation of an adverse balance on the open account might result in a financial loss on the final year's working, the profits for earlier years having already been appropriated.
4. For this reason I feel that the proposed fund should be available to be drawn upon to meet a possible loss on the financing of the open account as well as on trading in essential co modities, and I request your approval to widen its scope accordingly. The name already proposed will need to be changed to "Trading Reserve Fund", but it is not proposed that the appropriation of $30,000,000 should be increased.
AGC: oma
į
No comments yet.
Private notes are available after approval.