OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

41

14

54126/4/48

Cede

TO HONG KONG(Sir A. Grantham)

Sout 2nd December, 1948,

GIOVANE 'BESTEP%27STVENI PRAPISTS

17.00 hrs.

No. 1245 Confidential

1.

Your savingrem No. 235 of 7th April, 1948.

Rehabilitation Loan Ordinance.

I agree that no action should now be taken to require registration er deposit of First Issue Bonds.

Rood for utmoet stringency in Exchange Control makes it necessary, however, to consider what can be dane as regarde subsequent lesues of Rehabilitation Loan or other loan which might be requirede.g. for Tal Lam Chung reservoir project.

3. It may be expected that events in China will render comparative security of a Heng Kang Government loan more attractive than 1t has been and that other opportunities for investments will be fever. In these circumstances would it be possible to lasue registered

4. Alternatively it has been suggested that it might be possible to arrange Per bearer bonds to be issued only to residents of Hong Kong and for interest and redemption monies to be payable only to such residents or to persons who were resident in Hong Kong at the time they purchased the bonds,

4 above.

Please let me have you early views on 3 and

Coples sent to;

Treasur

I

Bank et England

المالية

Mr. T、A.J. Marshall Roose11 Edaonds Kr. J.H. Martin

Porterpre

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