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THE NATIONAL ARCHIVES

CO 537/1369

restrictions. Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet. Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copynght

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the necessary steps to have it enacted.

3. You will observe that nɔ provision is

made in the draft Ordinance for the increase

of $16,000,000 in the Bank's fiduciary issue

which would be necessary to give effect to

the arrangement in sub-paragraph (3) and (4)

of paragraph 5 of my letter of the 28th of

February to the Bank. Such provision is,

however, made in a further draft Ordinance

to amend the Hong Kong and Shanghai. Banking

Corporation Ordinance of 1929 which I am

sending to you separately. This Ordinance

provides inter alia for the substitution in

sub-section (1) and sub-section (3) of

Section 11 of the Hong Kong and Shanghai

Bank Ordinance 1929 of the figure of

$46,000,000 for the figure of $30,000,000.

65

[draft-

55116/46]

I would, however, emphasise that, as is clearly implied in my letter of the 28th of February,

1946 to the Bank, that this increase in the

fiduciary issue is not intended to be

permanent. In due course, therefore, when the

whole of the additional fiduciary issue has been covered by Certificates of Indebtedness issued

in accordance with the arrangements in paragraph 5 (4) of my letter of the 28th of

February, a further amendment will be necessary

to the Hong Kong and Shanghai Bank Ordinance

again reducing the fiduciary issue to $30,000,000.

I should be grateful if you will take steps to

ensure that this point is fully appreciated by the

Bank.

4. It will be observed that in Section 2 of the

draft Ordinance herewith enclosed the first date

is January 1st, 1942. I shall be grateful, however,

if you will consider whether an earlier date

corresponding to the date from which all Banks in