52.8 2nd

12

17

Telephone No.: VICTORIA 1234.

Any reply to this letter should be addressed to~

NATIONAL

THE SECRETARY,

SCHEME

DISABLED

2 MEN:

TREASURY,

WHITEHALL, LONDON, S.W.1,

and the following number quoted

RECERED

TREASURY CHAMBERS.

F.1125/2.

- 8 JUN 1928

7 June, 1928.

JOOL.OFFICE

Sir,

9

to ca. 14.

con

077.8

20

happy

I have laid before the Lords

Commissioners of His Majesty's Treasury Sir G. Grindle's

letter of the 22nd May (52821/28) and enclosures,

further relative to the cover for temporary expansions

of the excess note issue of the Hong Kong and Shanghai

Banking Corporation.

In reply I am to state for the

information of Mr.Secretary Amery that My Lords are

now prepared to agree to permission being given to the

Corporation to earmark sovereigns at the Bank of

England on behalf of the Crown Agents for the

issues.

Colonies as security for any such temporary excess

They note that the facility of earmarking

sovereigns in London will only be required occasionally

and for comparatively short periods to meet exceptional

and temporary increases in the note circulation and

that the gold would not be required to be exported.

The Under Secretary of State,

Colonial Office.

My

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