(2)
32
I would take this opportunity of confirming
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 our note circulation and that the gold would not be required to
be exported.
In the unlikely event of gold actually having to be imported into Hong Kong, this could be done from San
Francisco and the amount earmarked in London released.
The facility requested will not in any way affect the standing deposits at Hong Kong and Shanghai and will only be utilised to meet seasonal and temporary fluctuations within a maximum limit to be determined by His Excellency the Governor, who will be notified on every occasion on which the facility is used, and it is understood
that special permission will be asked for in the event of the
Bank wishing to exercise the power continuously for a period
exceeding thirty days.
I have, &c.,
(Sd.) A. C. Hynes,
Chief Manager.