COPY:
CONFIDENTIAL.
Via Siberia.
Sir,
Enclosure No.1.
4 Millbank
We stminster:
LONDON, S.W.1.
23
I have the honour to refer to your telegram of the 5th arch, 1930, informing us that the storage of bar silver by the Hong Kong and Shanghai Banking Corporation to our order with the Westminster Bank on account of the note issue in Hong Kong was approved. We notified the Hong Kong and Shanghai Banking Corporation accordingly but heard nothing further of the proposal.
2.
We have now, however, been approached by the Hong Kong and Shanghai Bank and i enclose a copy of a letter from Sir Newton Stabb asking if arrangements could be made for the Crown Agents to take over the custody of 30,000,000 ozs. to 40,000,000 ozs. of bar silver as security for the Bank's note issue in Hong Kong.
3.
We have been in communication with the Royal Mint and understand that they would be willing to store up to 40,000,000 ozs. of silver for an indefinite period at a charge of ls/- per ton per month, in addition to which there would be handling charges of 4/6d per ton on delivery and 5/- per ton on release. From enquiries which we have made we are of opinion that these charges are reasonable, but we have no information as to whether the expenses are to be borne by the Colonial Government or by the Hong Kong and Shanghai Banking Corporation. We
The Colonial Secretary,
HONGKONG,
shall