95
)
the servicing charges might exceed those of an
ordinary
loan.
It has been suggested that this
difficulty might be overcome by interesting a
consortium of Chinese Banks in the loan before it
was issued with a view to their agreeing to
underwrite a sufficiently large amount to ensure the
success of the loan. Once the loan was known to
full,
have been taken up in full it is anticipated that the
underwriters would have little difficulty in
disposing of any amounts held by them to the
public. This procedure was followed successfully
I should be grateful for a
in Palestine.
further expression of your views on this matter
in the light of the circumstances explained above.
I have, etc.
But
see have 3+48 (10)
on which we are
writing & Portiorie
Ty from 54126/4/48.
f
This passage
will nee
revision - St
abendy
tin. Bandhillon
ん
19/10
A further difficulty, which might be more serious,
arises from the fact that, owing to the overriding
need for stringency in exchange control, H.M.G. could
not authorise the issue of bearer bonds unless
satisfied that they could neither leave the Colony
nor be transferred by delivery to a non-resident
without authority. Registration or compulsory
deposit would provide one solution to this
but this might adversely affect the popularity of the
bonds.
difficulty,
Alternatively, it might be possible to
arrange that the premium bonds would only be issued
to residents of Hong Kong and that interest on the
bonds would only be paid in Hong Kong to residents
of Hong Kong.