ہوا
Any reply to this latter should be addressed to-
THE SECRETARY,
TREASURY,
WHITEHALL, LONDON, S.W., and the following number quoted.
TREASURY CHAMBERS.
295
6 October 1916,
24311
16
47758
REG
Sir,
REG 7 OCT 16
In reply to Mr. Grindle's letter of the
11th ultimo 42374/1916) relative to the projected
opening of a Branch in Hong Kong of the Bank of
China, I am directed by the Lords Commissioners of His Majesty's Treasury to request you to inform Lir. Secretary Bonar Law that as a matter of general principle it would appear to Them to be preferable, if possible, to use other
means for preventing the opening of banks or branches of Banks in Hong Kong where such opening is deemed indesirable rather than to pass legislation which would involve the
issue of a special Government licence for the conduct of
banking business by all banke already established or hereafter to be established in the Colony.
The requirement of a Goverment icence is
objectionable on the ground stated by the Governor
viz: that the possession of a licence is inevitably misunderstood to imply some Government guarantee of financial stability, and has thefurther disadvantage as matters now stand that it necessitates the framing by the Government of some definite policy in regard to what banke may be licenced, in order that the dangers of arbitrary action in individual cases or of accusations of arbitrary action by the Government may be avoided. At the present time when the whole question of the
C
The Under Secretary of State,
terms
Colonial Office.