54126/4/48

32

(2/48) [16] Wt. 19126/754 50m. 7/48 C.N.Ld. 748

C. O.

Mr. Palmer

agrees)

Mr. Bourdillon agrees/

Mr.

Mr. Kelvin Stark b

Mr. Wallace 7/

Mr.

Sidebotham

DRAFT.

D.B. Pitblado, Esq.

1.

Treasury.

18

Copy of No.17

FURTHER ACTION. Copy (1) T.F.J.Portsmore

\(B/England)

(ii) 53687/48 (Tai

Lam Chung

Reservoir).

(iii) 15547/64/48 Econ

Br.U. in a fortnight if no reply.

Permt. U.S. of S.

Parly. U.S. S.

Minister of State

Secretary of State

Your Reference.E.C. 7/202/01

For Mr. Bourdillon's signature.

this matter

Would you please refer to Marshall's letter

to Portsmore of 21st December 1948 regarding the

raising of loans in Hong Kong in the form of

do not appear to make bearer bonds. As we appear to have reached a much progress, deadlock on this subject and as the whole question

of the form in which future borrowing by Hong Kong

must now be considered, perhaps I may put all the

relevant facts before you as we see them.

2.

L

Portsmore in his letter to Marshall of

14th December agreed, somewhat reluctantly, that

registration need not be insisted upon in the case

of the $50,000,000 already issued in the form of

bearer bonds. As regards any further issues he

raised the following points.

(a) Whether events in China would render a

registered issue more attractive than formerly. (b) Whether it would be possible: (i) for bearer

bonds to be issued only to Hong Kong

residents;

and (ii) for interest payments

and redemption money to be restricted to

residents or to persons who were resident

when they purchased the bonds.

The above points were embodied in our telegram

No. 1245 to which we have now received a reply, a copy of which I enclose. You will see that the

Fcopy

/Governor

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