for his consideration.

2. A further common

wall be

addressed to

office or Individual.

You on the receipt of

Sir) Lugard's reply.

CPI

HONG KONG STRAITS

No. 1804

C O

224

DOMESTIC.

1804

GUA 15 JAN 07

(Subject.)

Agents 1907

4 Jan

st previous Paper.

(VR)-42005—35206-11-0

anbsequent Paper

Note

Note Issues of Chartered, & HH Shanghai,

Banks.

Seuss copies of letter from the Banks as to amount of their note issue payable in Straits Dollars. Proposes that rate of the dollar should be taken as 2/4 all through for purpose of valuation

Lucas

(Minutes.)

Almost the whole of the notes are

in Hong Kong, and it would not be fair to take 2/4 for the

rate this year. One penny in the dollar makes

a very considerable difference. Moreover the difficulty

will certainly recur next year, and

we had better get

the thing right in Principle at once.

I say

that securities should be required to cover

one third of the total note issues reckoned at the

rate of the british value of Mexican dollar, plus secu-

rities to cover one third of the enhanced value of

the S.S. issues, taking the latter in the case of HSBC

and S. bank at 260,000 dollars, and in the case

of the Chartered bank at 2,250,000.

Copy corresp. to Treas. L.F.

that the return isd..

prepared accrding to CPL-17

the in M. 16 17 at

ance

Agent

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