20

require modification?

I presume it is intended that the Secretary of State should appropriate interest and sinking fund contributions under Sections 7 and 10 and that he should be authorised to redeem under Section 9(2) and exercise the powers under Section 12(a) to (f) (I presume (a) to (c) which with other parts of the Ordinance are spent).

(+) HK Dollar Loan Ordinance, 1934. (io)

This was

added to the schedule at the last moment and I did not study it, but, as Mr. Chorley points out, it will not work at all without modification, but The principal question is what is to be done about

the annual drawing for this year of bonds for a redemption under Section 5, which should have taken place not later than the 30th of June? Where

(6)

are the advertisements to be published, and where are the bonds and interest to be paid under Sections 5(7), 9 and 11?

Here again I presume

that the Governor's powers under Section 10 and those relating to interest and sinking fund should also be exercisable by the Secretary of State.

Mr. Chorley also raised the question whether we would require any consequential provisions establishing continuity between the exercise of the powers by the Governor or other authorities in Hong Kong, and their exercise by the Secretary of State, e.g. provided that notices given to the Governor shall continue to be effected. I have not found any need for provision of this sort.

I presume you are content to leave the befence Contribution Ordinance, 1939, alone, and that the Treasury will not claim payment out of the money in the hands of the Crown Agents. In this connection see especially Section 4 of the Ordinance.

Copies of the Ordinances referred to above and in the Order are with this file. They were returned to me by Mr.Chorley.

When you have considered the questions raised above you may like to have a meeting at which we can settle all the modifications required. 9 saint tor should not refer the du Paully. Coussel again.

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