1
No
No 404.
Sir,
CO
63019
RES 20
271
GOVERNMENT HOUSE,
HONGKONG. 3rd November, 1921.
سه
35262
mo
30080
With reference to your despatch No.211 of the
26th July, and previous correspondence, I have the honour to enclose 20 copies of a bill to amend the Hongkong and Shanghai
Bank Ordinance, 1966.
2. It is not proposed to introduce the bill until the paid up capital amounts to $20,000,000.
3. It will be noticed that there is no provision in
the proposed new section 13 corresponding to the latter part of the present section 13(1), i.e., the proposed new section 13 places no obligation on the Corporation to keep any particular amount of coin or bullion in its om treasuries, and under its own control, against the notes issued from the
various establishments of the Corporation.
4. It is the view of the Corporation that the agreement communicated in your despatch No.178 of the 25th June, under which one third of the ordinary note issue is to be "fiduciary", involves the abandonment of the above provision. I draw attention to the point because the object of the requirement is not quite the same as that of the rest of the section, and because it is not clear that the term "fiduciary" in Sir Charles Addis' letter of the 8th June excludes, or was intended to exclude, this provision, or even
mo
28653
that the point was ever considered.
THE RIGHT HONOURABLE
WINSTON CHURCHILL, M.P.,
80..
&c.
6.