CO537-(1262-1649) — Page 98

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Ref.:

CO 537/1369

THE NATIONAL ARCHIVES

2

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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00063

62

cms

Ref.:

CO 537/1369

restrictions. Fu 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 copyngh! Further information is given in

the enclosed Terms and Conditions of supply of National Archives' leaflet.

enacted.

3.

You will obu,rve that no 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 par graph 5 of my letter of the 28th of Febru ry to the Bank. Such provision is, however, made in a further draft Ordinance to amend the Hong Kong and Shanghai Baking Corporation (rdinance of 1929 which I am sending to you separately. This úrdinance provides inter alia for the substitution in sub-section (1) ană sub-pection (3) of section 11 of the Hong Kong and shanghai Bunk Ordinance 1929 of the fi ̧ure of #4;6, 00, 00 for the figure of $30,000,000. 1 would, however, emphasise that, na is clearly implied in my letter of the 20th of February, 1946 to the Bank, this increase in the fiduciary issue is not intended to be permanent. In due oʊurne, therefore, when the whole of the additional fiduciary issue has been covered by Certificates of Indebtednese issued in accordance with the arrangemento in paragraph 5(4) of my letter of the 28th of February, a further amendment will be negos.ary to the Hồng Kng and hanghai Bank & rdinance again reducing the fiduciary issue to $30,000,000. I should be għateful if you will take steps to ensure that this point is fully ap recited 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 arlier date corresponding to the nte from which ali Banks in Hong Kong were closed should be substitutod.

5.

I would adễ that I am in counication with the 'Mofcantile

Ins