-)
In the reply to this Letter the following
Number should be quoted.
3554
07
Sir,
REC
C.O.
7688 416
REG 1 MAR 07,
TREASURY CHAMBERS,
18 February 1907.
36 ple
with he
10004/16
With reference to Mr. Lucas's letter of the 21st
for instant (No.6201/1907), the Lords Commissioners of His
Ahong. Majesty's Treasury direct me to signify Their concurrence in the proposal of the Secretary of State for the Colonies that the guarantee fund to be provided by the Hong Kong and Shanghai Banking Corporation in respect of their issue of Notes beyond the present normal limit of $10,000,000 may be accepted in the form of approved securities, instead of
in coin or bullion as contemplated by this Board's letter
of the 29th ultimo.
The amount of Notes to be issued against the
deposit of an equivalent sum in securities under this
arrangement must be limited to the amount of the increased
capital of the Bank paid up from time to time; and any
excess of issue over the limit so determined must be
covered by the deposit of coin or bullion.
I am to add that Their Lordships are in entire
agreement with the Earl of Elgin as to the inadvisability
of allowing any further increase of the Bank's issue on the
terms of one-third security. Such an extension is the
more to be deprecated when it is applied for on the ground
The Under Secretary of State,
Colonial Office.
that