Governor.

No.

Conf.

1906 Dec

HONG KONG

No.165809

Note issue

(Subject.)

272

DESPATCH.

C.O. 1658

12 JAN 07

Rational Bank of China.

Last previous Paper.

He does not consider that state of the bank

MO 41087 justifies acceptance of its notes by Govt.

Says at this stage Treas cons to be informed.

J

Feb

This

**£(78) – A2097-811

01427-4302-70-3

art subsequent Paper.

Mr. Free Lucas

(Minutes.)

Copy to Treas. I say that with their concurrence we propose to inform the Bank that their requests cannot be complied with. Point out that it is scarcely worth while from the Bank's point of view that an extension of their issue should be conceded against a deposit of coin or bullion to the full amount of the excess, as Govt. decline to accept the bank's notes it is scarcely desirable that the Govt. should hold the sums deposited against excess issue. Kupinuthsë the Govt. had better have nothing to do with the concern.

DA.16

CPL:16

at once

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