The Sec. to the Treas.
M
Mr. Collins
Sir,
r. Fiddo.
14.12
Anod Slud
Copy to Gov Conf 6 Feb
16b6, Hong Kong
19
Jau. 07.
275
D.
With reference to your letter No. 14868 of the 2nd of Aug. last, I am directed by the Earl of Elgin to transmit to you, to be laid before the L. of the Treas., copy of a despatch from the Gov. of H.K. regarding the new issue of the National Bank of China.
Colour -
Lord Elgin proposes, with L.B.'s concurrence, to inform the Bank that H.M.G. are unable to comply with their request, either as regards the acceptance of the duty by the Govt. or as to the extension of the note issue. On the latter point I am to observe that the stipulation requiring our deposit of coin or bullion with the Govt. to the full amount of the excess issue would render extension of the issue of little or no value to the Bank, while it is scarcely desirable for H.M.G. to hold security against notes which it declines to accept. It would be preferable that the Govt. should have no connection with the note issue of this Bank.
i 2. 40.
(Signed) C. P. LUCAS.