X I propers to take

Likes

pps.

M

there

by no

question that

the

Anu

learer Lond

[undų to

seriou

Ho

CM

control.

J

стать

eachings

uwen 23/1

that

*

f

I regret having had to delay action on these papers for a few days, for the matter is urgent.

6

It is also rather a chapter of accidents. I see that our telegram at (65) on the 1947 file was issued after Treasury letter at (63). Later the United Kingdom Exchange Control Act. came into force, prohibiting bearer bonds. Copies have I believe been sent to all Colonies, and it was expected that Treasury would ask Colonial Office to invite Colonies to enact similar legislation. I gather that, in fact, Treasury did not so ask, and it would seem that the copies of the Act have been, comparatively htth studied in many Celonies! X

Meanwhile, Hong Kong has enacted Ordinance at (73) on 1947 file and from (71) it may be that the first issue of $50,000,000 at 32% has already been made under the terms of Clause 7(7) of the Ordinance which provide for transfer by delivery i.e. bearer bonds.

Exchange control in Hong Kong is unusually difficult owing to its particular circumstances, and transfer of such bonds outside the sterling area may readily occur. r. Butters' minute of 11/2 and subsequent minutes indicate, after discussion with Mir. Gorell Barnes, the line taken in draft opposite.

Regarding premium bonds, I learn from Mr. Marshall discussions are proceeding between. Treasury and the Bank of England on possibility of making the m "safe", but the om ens are not favourable, particularly for Hong Kong where the difficulties are greater than usual. Unfortunately registered premium bonds might well not be so popular, but they are not the immediate concern and can be considered in the light of Hong Kong's comments.

If the Ordinance is amended, Hong Kong may wish to include the minor suggestions made in (1) on the file regarding Clause 7 and I have therefore included in draft. Suggestions regarding Clause 8 in (1) do not appear very important.

I have not

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in digt

elute

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U.A.

Lo

Colonies.

A His

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cave to

amend

Amendments in

anggested by MW.

discussio

circumtences in

put wa

Exchange Certid

char as

which it was

Return Stark may

according t

pava 1⁄2 j duge.

Hecks after

him.

ave

-then.

M. J Bon

21/2.

14r. Pulmes.

/

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Fasteve Roguetry

approached f

apparently some

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