Registry

No.

SECURITY

-12-

DRAFT

LASSIFICATION

To:-

Top Secret,

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

................................In Confidence

Type 1 +

From

Telephone No. Ext.

Department

DSR11

At present companies would be willing to repurchase at

face value most of the coins offered to them because

if the coins are still in good condition they currently

attract a premium in the secondary market and may

frequently command a price higher than the original price.

The critical moment would come if the coin market

should weaken.

(j) Tighter restrictions on the redemption of coins

This is done byplacing limits on the number of coins

which can be redeemed at any one time. Further

restriction could be imposed by establishing that

coins for redemption must be presented in person

in the territory concerned.

(k) Stop the issue of specimen coins

All the redemptions experienced by the territories

for which data is available shows that these have been

confined to specimen coins. Apparently no proof versions

have been redeemed. Under present conditions it would be

reasonable to expect fewer redemptions from future issues

if the specimen version were discontinued.

(1) More stringent control by HMG

If this objective is accepted it is for consideration

whether the design approval procedure might not be used

to limit the number of coins in future programmes.

/m

138649 Dd 107857 500M 2/76 MFP

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