CO129-286 - Acting Governor Major Gen Black Governor Sir Blake & Public Offices - 1898 [11-12] — Page 599

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In the reply to this Letter the following Number shoull be quoted.

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Sir,

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592 15847

REP

15 JUL 13

TREASURY CHAMBERS,

July 1898

I have laid before the Lords Commissioners of Her Majesty's Treasury Mr Lucas' letter of the 13th instant, relative to the note-issue of the Hong Kong and Shanghai Banking Corporation: and I am directed in reply to request you to inform Mr Secretary Chamberlain that Their Lord- ships concur in the proposals contained therein, vizt:-

(i) that the Corporation should be empowered by Local Ordinance to issue notes beyond the present limit (i.e. the amount of the paid-up capital) on the condition that the excess issue should be fully covered by a deposit of dollars with the Colonial Treasurer. The deposit would, of course, be earmarked as security for the note issue.

(ii) that this arrangement should, in the first instance, be limited to a period of one year.

(iii) that the empowering Ordinance should embody the arrangement which was made with the Bank in 1889 with

regard to the security for their ordinary note-issue.

Their Lordships desire me to point out that it

will probably be convenient to arrange that the Bank should not deposit or withdraw sums of less than (say) $50,000 at the Colonial Treasury. They understand that no objection

The Under Secretary of State,

Colonial Office.

will