F
to Spr 30.6.
483
Downing Street,
July, 1925.
Dear Collins,
1 any thanks for your telegram about the telegram from Hong Kong about the Panks. I enclose a copy of the Secretary of State's reply. It is based on Beri-official sugestions from the Treasury.
Chiter came in today to sugest substantially the same arrangement as proroaed by the Governor,exoept that he did not appear to have thought of the Government Guarantee. He explained that the securities in question are mainly shares in public utility under- tkins and to some extent property and although the Chinese Banks normally advance up to 90% of the market value and so get 12. interest, he thought the limit of one-third of the amount 30 need should make the business quite safe. In regard to the last paragraph of our telegram he agreed that the securitics taken over should be confined to long kong securities, but
·
he thought the "anks would be alive to that in any one.
Guillemard
ALLING, MN, O.K.C.,