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Enclosure 10.2.

Hongkong & Shanghai Banking

Corporation.

Hongkong. 15th October,1985.

MEMORANDUM.

321

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In consideration of the Hongkong & Shanghai Bank-

ing Corporation making advances to the Government in Special Account in Hongkong to the extent of $15.000.000

the Goverment on their part undertake to keep such

advances fully secured in the following manner,

Deposit with the Hongkong & Shanghai Baking Corpor- ation in Hongkong Silver $ Hongkong currency to the extent of one-third of the amount to be advanced, and deposit with the Crow Agents, London, on account of the

Hongkong and Shanghai Banking Corporation gold coin sufficient at the current rate of exchange to fully cover two-thirds of the amount ot be advanced.

All loss on exchange arising from the eventual reconversion into £ of the special silver deposit in Hongkong to be met by the Government. It is understood in this connection that the Government will not call upon the Hongkong & Shanghai Banking Corporation to transfer at par to the Government's credit in current a/c with the Hongkong & Shanghai Banking Corporation in Hongkong the

silver $ constituting the special/deposit.

silver

Should the Hongkong & Shanghai Banking Corporation deem it necessary for the proportion of silver $ to be increased, the Goverment shall mint the required increase at Government expense.

Pending deposit in Hongkong of one-third in silver dollars, the amount deposited in gold coin with the Crown Agents in London to be maintained at sufficient to cover the full amount of the advance to be made.

It is understood that in the event of an

increase

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