Wt. 23364/665. 8/47. 50,000. S. & S. Ltd.
C. O.
Mr.
Boss
27/2
27/2
Mr. Kelvin Stark
Mr. Palmer
Mr. Mayle Box V. Amish
Mr.
54127/4/48
Permt. U.S. of S.
Parly. U.S. S.
5/3
Secretary of State.
Your Reference....
DRAFT. CODE TELEGRAM
No.....Confidential
IMMEDIATE
Your despatch No.1 Confidential of
GOVERNOR,
73/ -/-/47
6th January 1948.
HONG KONG.
Rehabilitation Loan Ordinance.
FURTHER ACTION. ·
Copy to
A.H. Hicks (0: Agents)
And lugell (Trening ad lepele
(Treasury
1.
I understand first issue of
$50,000,000 has now been made. Since issue"
of loan was approved the balance of payments
and exchange position of sterling area has
deteriorated especially in recent months
and possibility of exchange control leakage
is an increasingly serious concern. It is
accordingly most desirable that all bonds
issued in Colonial territories should be
registered and not (repeat not) in bearer
form. Ordinance however includes provision,
under Clause 7 (7) for transfer by delivery,
thus covering both ordinary and presumably
any premium bonds if issued subsequently
under a subsequent Ordinance. Bonds would
therefore be in bearer form and provide
possibility of Exchange Control leakage.
Amendments to loan Ordinance to
isoned in Hong thing enable the bonds to be made registrable-
would be as follows:
2.
Section 7 (4) Omit all words after "the
day named in that behalf on the bond".
/Section