C. G. 3407
ALC
24 FEB 90
In the reply to this Letter the following
Number should be quoted.
1998
(90
610
TREASURY CHAMBERS,
22 February 1890.
Sir,
I have laid before the Lords Commissioners of Her
Majesty's Treasury your letter of the 4th instant, and enclosures, from which it appears that the Hong Kong and Shanghai Banking Corporation are prepared to accept the condition prescribed by the Treasury letter of the 14th September last that They should safeguard their note-issue by the deposit of approved securities to the amount of $2,500,000, being one third of the amount of the possible issue.
I have also submitted to the Board the Ordinance likewise forwarded, which has been enacted by the Legislature of Hong Kong, for the purpose of now according to the Bank that further liberty of action which it has so long sought.
As the Bank has assented to secure its issue, My Lords offer no objection to the Ordinance; but They observe that the previous consent of the Treasury is made a condition precedent to the opening of each Branch of the Bank outside the Colony; and while they are unwilling to propose any changes involving the enactment of a new Ordinance, they think it well to note that requirement about the Treasury consent is not in consonance with the policy latterly pursued in the case of supplemental charters in which My Lords have, as you are aware, been careful to divest Themselves of interference in the affairs of Banking Companies.
I am,
Sir,
Your obedient servant,
Revelly
The Under Secretary of State,
Colonial Office.