A. (1) 9
The conditions of lending the money to the Hong Kong Government include a clause that on a month's notice the Hong Kong Government can repay in part or in whole the amount lent by any of the lenders. The Hong Kong and Shanghai Banking Corporation also charge % per annum on debit balance as cost of working the note issue and are relieved of payment of 1% stamp duty on that same amount. The sterling loan is at 5½%, 1¼% is received for deposit on current account. When, either owing to the fall in the silver exchange or on account of repayments of loans to borrowers in Hong Kong and the receipt of interest on loans, the debit balance in the Hong Kong Bank account falls considerably short of the equivalent sum deposited in gold in London, notice is given to reduce the loan to the Hong Kong Government. Already the whole amount lent by the West African Commissioners has been repaid.
30th May, 1927.
C. McI. MESSER,
Treasurer.