I
could not be charged with a departure from
the terms of the issue; which might be the CABE
if the proposal were that the S.F. should be
utilized at an earlier date than that laid down
by the Ordinance (31. Oct.1921) for the
alternative method of redemption vizt by drawings. See Sec 2 (3) of Ordinance 17 of
1917.
We assume that the Government will pro- bably make it known that they are prepared to purchase bonds at an earlier date than the
holders were led to expect, so that not only
the Hong Kong and Shanghai Bank but also all
other holders may have an opportunity of selling their bonds if they wish to do so. It seems
to us essential that this should be done.
Mr. Grindle
7/1/18
Then approve by tel. subject to the
assumption in the last par, of Sir R. Antro-
bus's minute.
AMC 2.1.18
8.1.18
Copy of this and our reply to C.A. L.F.
5.9.8.1.15
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Sir,
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63744
178
REC
BEG 31 DEC:7
GOVERNMENT HOUSE.
HONGKONG. 7th. November, 1917.
Referring to my despatch No. 217 of the
26th June, I have the honour to ask your permission to
amend the War Loan Ordinances, 1916 and 1917, in order
to make it clear that the Governor may approve at any
time of the purchase by the Government of bonds of the
Hongkong War Loan in the open market for the purpose of
redeeming the loan.
2.
It is proposed to employ the sinking
fund for this purpose, buying up annually stock in the
sum of $200,000; whereby the trouble and expense involved
in investing the sinking fund will be obviated. The
Hongkong and Shanghai Banking Corporation, who are by far
the largest holders of the stock, are prepared to sell
their holding on these terms.
3.
I shall be glad of your reply by telegraph.
I have the honour to be,
Sir.
Your most obedient,
humble servant,
RIGHT HONOURABLE
WALTER LONG, M. P.,
&c..
&c..
Governor, &c..