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prefer registration or deposit, but are
willing to agree to suggested alternative,
which seems a reasonable compromise. Point
of alternative is that if issue were
restricted to persons "resident" (for
purposes of exchange control) in Hong Kong
and transfer except to other such residents
forbidden, consequence would be that
payment could in fact be made only in
Hong Kong dollars, but resulting
discrimination, in sofar as it existed
at all would not (repeat not) be of a type
prohibited by agreements.
6.
Subject to legal advice, conditions
of issue and transfer to residents only could
be embodied in terms of issue and on face
of bonds themselves.
an a point of detail,
it is thought that it would be necessary
to require that resident to whom interest
and redemption monies payable should be
"beneficial owner", otherwise resident banks
and other agents could accept payment for
non-resident clients.
7. I appreciate that these requirements might
tend to scare off certain class of potential
investor, but it is not considered necessary
to require such details of, or unduly formal
proof of, "residence" etc. as would in fact
scare off bona fide investors. Subject to
your views it is suggested that exact nature
or extent of proof required could either be
assumption by authorities of residence,(unless
authorities have proof to contrary) on
presentation of bonds and coupons from
Hong Kong address, or acceptance of verbal
statement