to a resident not (repeat not) being allowed to receive interest and redemption money on bonds purchased whilst he was resident if he subsequently became non-resident. n reconsideration, Exchange Control Authorities feel this to pr referable to the original suggestion, Pornt of amended alternative is that if issue were restricted to persoDS
H resident ¿for purposes of exchange control) in Hong Kong and transfer except to other such residents forbidden, consequence would be that payment to non- resident would be obviated, but resulting discrimination, in so far as it existed at all, would not (repeat not) be of a kind prohibited by agreemenis.
6. Subject to legal advice, conditions of issue and transfer to residents only could be embodied in terms of issue and on face of bonda themselves. On a point of detail, it is thought that it would be becessary to require that resident to whom Interest and redemption monies payable should be "beneficial
otherwise resident banks and other agents could accept
谚
Payment for non-resident clients.
7%
I appreciate that these requirements night tend to scare off certain class of potential investor. bus, it is not considered necessary to require such details of, or unduly formal proof of, "residence" etc. as vould in fact scure 02f bona fide investors, Subject to your views it is suggested that exact asture or extent of proof required could either be assumption by authorities of resident status (unless authorities have proof to contrary) op presentation of bonds and coupons from Hong Kong address. or acceptance of verbal statement of residence and ownership. It is also suggested that public statemert could be made in reassuring terms at time of issue, explsiuing that effeci of the condition regarding. "residetos" would be taat paylents vould be in Hong Kong doliers only, carrying no (repet no) right. of transfer outside Hong Kong and iplicating actual practical effect of conditions as to residence and ownership, and waveing pCPRODS Antending to become "nou-resident" to sell for leaving Colony.
any
8. I an moat arīious that, as far as possible 骂 soun Pequired should be saraced locally but without facurring sachange.2ontrol dangers; cd I hope that in light of this fuller explanatioè you will find 16 possible to process on above lines
when
9.
(a) raising any further instalment of the
rehabilitation loan that may be required to met rehabilitatiop expenditure that cannot be met from revenue; or
(b) raising loan for development works such as
the Tai Lam Chung Reservoir scheme.
I should be glad of your early commers on the abbre points and or the possibility of the issue of premium bonds. You will doubthese concult me before reising any further loan.
10.
Paragraph 9 of your telegram No. 173 refers to a loan on the London market and I understand that Unofficial Meubera
f Executive and Legislative Councils raised with ar. Paskin question of borrowing from the Exchange Fund. On these two pojuts I would refer to paregraph 4 of my telegram No. 1492 of 17th September, 1947. In view of the present commercial prosperity in Hong Kong 1 feel sure you will agree that every effort. must be made to raise funds in Hong Kong
whether by taxation,
or
/Joens