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HKK 5/38
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Mr Rushford Degan
Mr Stuart
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22.
Advisers) letter to ime
PROOF SETS OF HONG KONG COINS
1.
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26 AUC 19/4
23/58 HKK 5/38
In their telegram 186 Saving of 2 August Hong Kong tell us that they wish to enter into an agreement with the World Coin Corporation of America to undertake the promotion and sales of Hong Kong proof coins to numismatists all over the world. The project involves the minting of 2 high denomination coins ($25 and $50) not in issue at the present time, and this in turn requires HMG's agreement under the relevent provisions of the Hong Kong Coinage Order 1936.
2.
This is very different from the proposal which FLAG B2 Mr Goodfellow recorded in his minute of 28 June since
we are now concerned with minting for proof sets alone (as distinct from public drculation) and since the coins are in fact to be struck by the Royal Mint and not by a foreign company. The WCC will merely undertake the promotion and sales of the proof sets from which Hong Kong hopes to make a useful profit.
3. I hardly think we can object to the proposal as it now stands. The Hong Kong Government will be in compliance with the Coinage Order and the Royal Mint (Mr Dowling tel. 488 3424) has confirmed to me that Mr McGrath of the WCC is known to them and that the statement in para 3 of the Hong Kong telegram under reference is correct, at any rate to the extent that the Mint have told Hong Kong that they would be prepared to supply the coins needed for this scheme. But Mr Dowling made it clear that they are not enthusiastic over the WCC's way of doing business and feel that Hong Kong would obtain better terms and stand to make a bigger profit if they availed themselves of the Mint's know-how' and world-wide connections also for the sales and promotions aspect. The Mint have in fact offered their services in these respects to Hong Kong but have apparently been turned down in favour of the WCC. Dowling agreed however that this was a matter for the commercial judgement of Hong Kong though I think he will wish us to put in a word on behalf of the Mint when the time comes, in the hope that Hong Kong may even at this late date be prepared to reconsider their choice of agent.
Mr
4. The next step however is to seek the Treasury's agreement also for the minting of the 2 additional coins as required under Article 3 (1) of the Coinage Order. I attach a draft of a formal letter for this purpose and should be grateful if the Legal Adviser would take a look at it and say whether it meets the requirements of the Coinage Order. If the Treasury are prepared to agree we can then consider what further steps it may be possible for us to take in support of the Royal Mint's interests. Mr Dowling will let us have his suggestions for this as soon as he has seen a copy of our letter to the Treasury.
22 August 1974.
J
Hanna, HKIOD.
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