COPY
3. 571.
.Sir,
BOARD OF TRADE, S.W.
12th September, 1927
18
I am directedby the Board of Trade to refer
:
The Secretary,
Treasury,
S.W.1
:
to r. Leith-Ross's letter, F. 10158, of the 26th
Mr.
:
April, enclosing copy of a proposed Bill to consolidate
and amend the Hong Kong and Shanghai Bank Ordinances
1866 and 1924, and to communicate the following
observations for the consideration of the Lords
Commissioners:
The Board note that in Section 20 of the
Ordinance of 1866 it was provided that
"it shall not be lawful for the company to invest,
lay out, employ, advance, or embark any part of its capital or funds in the purchase of any lands, houses, or other real property, or in any trading or mercantile speculation or business whatsoever (not usually considered as falling within the ordinary and legitimate purposes of a banking establishment)",
•
subject, however, to freedom to buy land or houses
for banking purposes, and to takeover and realise
property in satisfaction of debt. In Section 5 of the
draft Bill under consideration it is provided that
"The