27
the negative, and paragraph 2 of the savingram implies thet sʊnditions (b)(1) and (ii) are satisfied in practice (ap. from a negligible amount of $150,000) although there have been no such conditions laid down when the bonds were issued,
3. Fortswore also raised three more points, which have not been put to Hong Kong (his letter was subsequent to our telegram No. 1245) z=
(1) Why is it so difficult to market registered issues
in Hồng Kong? The answer appears to be that the Chinese will not subscribe to a loan which is in a form which imposes any restriction on its ready «sale.
(11) What would be the attitude of Hong Kong towarda
an application for official US. ƒ in respect of ・ interest or redemption money due te a resident
the U‚S,A‡ · Admittedly we have no informatiɑn on in point, but it seems from the experienDS of the first issue of 150 million that any purchase by, or transfer toy a non-resident, sxaept of course to Chinese with dună residence, is very unlikely,
(iii), Chether registered bonis where the interest is
paid by means of coupons te bearer might be acceptable? We understand thatyowim if the origima pärahasor of the band were registered, the Chinbaë have, partly to escape: taxatiən and partly because of the lack of secure postal services between the Chinese hinterland and Hong Kong, evolved a symben of transfers where the space for the transferee's name on the trans-
for doe ment is left blank, and the bends may thus pass through mony hands before any alkarution z is recorded in the register sa to the owner
/h. It