P.3633/2.

6 ̃, August, 1931.

35

The Manager,

sir,

I have laid before the Lords Commissioners of illa

kajesty's Treasury your letter of the 6th ultimo, apply-

ing for permission to ineraƉse the Note Issue of the

Chartered Bank of India, Australia and thinɑ to the @quivnimmt of Hong Kong ƒ80,000,000 on the aɛme conditions

as regards security as are provided for in the existing

Charters.

In reply I am to say thốt Their Lordships are not

prepared to agree in present sireusstɑness to the pro-

posed inereuse up to £50,000,000 of the Bank's maximum

Note Issue. After conauitation with the sther Depart-

ments concerned however and with the Government of Hong

Kong They are prepared to agree to an ineresse in th Bank's maximum Note Issue of $5,000,000, making a total of Hong kong ƒ35,000,000 in all, subjest to the condition

that any notes issued in excess of £30,000,000 will be

secured by the deposit of silver soin legal tender in

The Chartered Bank of India,

Australia and China.

Hang Long

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