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against possible depreciation of the Securities deposited.
4. There is one point that occurs to My Lords in connection with the deposit of the Securities constituting the Reserve Fund. Under the present proposals, the Chinese Government securities will be lodged in Hong Kong with the Colonial Government; and the Indian Government securities in London with the Crown Agents for the Colonies and the Permanent Secretary; and My Lords submit that it will be more convenient to have one Trust for the whole Reserve Fund. Accordingly, They suggest that all the securities should stand in the names of the Trustees in London with Attorneys in Hong Kong for the Securities lodged there.
5.
It is understood that the Bank will be at liberty to exchange the "enfaced paper" for other approved Government Securities.
6.
My Lords have duly noted the expression of the Bank's regret that any irregularity with respect to its establishment should have occurred in the past, and its assurance that the provisions of the Ordinances will be rigidly observed in future; and on hearing that the arrangements connected with the lodgment of the required amount of Securities and the constitution of the Trust have been completed, My Lords will be prepared to direct at once the signification in due form of their approval of the Bank's Establishments, as required by the original Ordinance.
My Lords assume that the list of the Branches and Agencies which accompanied the Bank's letter of the 22nd July is the list of places of which approval should be signified.
I am,
Sir,
Your obedient servant,
Ruckey
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