CO537-(1262-1649) — Page 43

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000 10

21 Trailyang 2v To Young

Mr.Caine.

4.346 6.3.86 10

I have produced a draft of the Ordinance ✈. but I don't know how you will like it. It is not easy to put into an Ordinance what is really an agreement between two parties. I have drafted on the basis that it is only necessary to enact provisions to enable either party to do acts which require legal validation. Thus I have left out the provision that the Bank has to pay to the Exchange Fund the equivalent of the notes used or deemed to have been used for the discharge of legal obligations by the Bank, It seems to me that the points which require legislation are

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(1) the notes to be legal tender.

(11) the Treasurer to have power to issue

certificates of indebtednes8

on payment of the £1,000,000

at the end of each year

I have inserted the date of 31st December,

but I doubt whether the amount would be ascertained

on that date. I think it might be on the 31st March

in respect of the preceding year.

I do not understand what the words "deemed to

be used for the discharge etc." mean, who is to decide whether they are to be deemed to have been used for this purpose I think the point needs clarification for drafting purposes.

The extension of the fiduciary issue of the Bank will be dealt with in the Amending Ordinance which Sir Sydney Abrahams is drafting for the Bank. The fiduciary issue will be raised by $16,000,000. Suice Junt this unite it has water that the with that adted was a clumsy one and I hav drafted another B, which has the advantage that it is

14/3/46. not a amandment of the Cumming and wane but mir deal with this mother aly. Www you let me have y

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with and if

you paper

as amended typed in perpen forum

How "B" I wish ham it

H. f. W. Hasling 15/3/46.

cms

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Ref.:

CO 537/1369 THE NATIONAL ARCHIVES

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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 copyright