FO371-27622 — Page 171

Cypher Telegram

FROM HONG KONG

PROM: TO:

Governor (otro Secretary of

Horthcote)

te for the Colonies

D. 20th July, R. 20th

1941.

13.20 hrs.

Yo. 707 PERSONAL.

Your telegram No. 609.

- no ware

Page 171

Remittances to Canada,

Discussion in the Executive Council indicates unanimous desire that I should do my utmost to secure reconsideration of your decision.

When evacuation of families was ordered in June 1940 local Government in good faith gave every encouragement to husbands to send dependents to Canada at their own expense and it was not until receipt of your circular telegram No. 147 of 1940 that question of regulated exchange presented itself. By that time nearly all evacuates now in the U.S. and Canada had left the colony. Number of women and children in Canada and the U.S. on whose account remittances are being made is 367 monthly amount being about Hong Kong dollars 110,000.

It will no doubt be appreciated that cancellation of remittances will be most strongly resented locally which would be all the more unfortunate as I have just succeeded in calming down, temporarily at least, agitation in respect of evacuation to Australia which was becoming serious. It will undoubtedly be alleged that

(1)

Those who followed H.M.G's wishes last year and with the full approval of the local Government sent their families to Canada are being most unfairly treated and that

(2)

Principal sufferers will be tho,e who have not the means or influence to obtain funds from outside sterling and dollar blocs e.g. Shanghai. (Unquestionably husbands in firms which have branches or agencies in Canada or the U.S. will act in this way).

I strongly urge view that the fact that Hong Kong is the only compulsorily evacuated area within the British Empire to which these peculiar currency difficulties apply 17self' constitutes a case for privileged treatment for evacuated from the Colony.

As regards Pensioners, Most of them are "persons already established in Canada" within the terms of your telegram No. 604 of 1940. Presumably there is no present intention to uproot such persons as this would be grave hardship.

On these grounds I earnestly request further

consideration of your decision, Should you be unable to accede. I must of course comply in which case I propose to give instructions that date of cancellation of remittance permite will be 31st October. Previous notification of your instructions, issuad locally on 26th February held out hope of reconsideration with the result that in practice it has been ineffective.

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