Telephone No.: VICTORIA 1234

Muš

32

31

In reply

NATIONAL

DISABLED

CHEME

MEN

please quote Regd. No.

F 3533/2

Dear Clauson,

Yesterday

TREASURY CHAMBERS,

WHITEHALL, S.W.I.

20th August, 1931.

Mr. Bruce of the Chartered Bank came to see me '

with the Solicitor to the Bank.

He considers that the restriction of the

increase in his note issue to $5,000,000, to be fully

covered by silver, places him in a disadvantageous position

at

compared with the Hong Kong and Shanghai Bank, and his

local Manager at Hong Kong has apparently got the

Hong Kong Government to say that they will recommend an

increase up to 10,000,000 on the old terms. lir. Bruce

wanted to know whether the Treasury would agree to an

increase of 10,000,00 instead of $5,000,000.

I told fr. Bruce that the decision had been

taken by the Currency Committee who were anxious to ma e

as small changes as possible in the present position

pending the general re-organisation of Hong Kong currency,

and that personally I thought it was unlikely that the

G.L.M. Clauson Esq., 0.3.E.,

Colonial Office.

decision

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