CONMDENTIAL
advices from most of the Hong Kong banks, we think that
thers would be advantage in making explicit their
obligation to submit advices.
9 More laporkant, in the event of implementation, and
parhapa at other times, as a check on the system, the
Bank of England will require evidence, not only from
banks in Hong Kong of the amounts of their sterling
liɛbilities to the Exchange Fund, but also from the Londer correspondence of these banks to the effect that
they hold at least the same amount of sterling. It seens
to me that you could require this information to be
provided to us under paragraph 4(5) of your letter.
10,
All this implies, of course, that sach bank must
keep proper accounting records of the sterling deposited
with it by the Government, and we assume that thi 18
being dona
195 I should be grateful if you would consider these
points and let me have your comments on them in duə
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