CO129-307 - Governor Sir Blake - 1901 [10-12] — Page 756

INCLOSURE 2

ATTORNEY GENERAL'S OFFICE.

C.O

2395 750

&

Reet 20 JAN 02

13th Decembar 190 1.

Report on Ordinance 35 of 190

...of

I have examined the accompanying Ordinance, entitled

An Ordinance to facilitate the investment of Trust

and other funds in the United Kingdon, la Hongkong

Government securities,

and I am of opinion that the Ordinance is one which is not contrary to

the Governor's Instructions.

#33

This Ordinance ir introduced in accordance with the instructions contained in the Circular Despatch from the Secretary of State for the Colonies dated 7th September,

1901.

The Secretary of State considers it of the utmost im- portance to the Government of any Colony proposing to raise loans in England that it should be in a position to take advantage of the provisions of the Colonial Stock Act, 1900, because otherwise such Colony's Stocks would not be ranked as Trustee investments within the meaning of the Trustee Acts, and would be liable to fall into the position of a class of securities distinctly inferior to other Colonial Government Stocks which were Trustee Stocks.

Under the provisions of section 2 of the Colonial Stock Act, 1900, Colonial Stocks are not eligible for investment by Trustees unless they comply with such conditions as the Treasury may by order notified in the London Gazette prescribe.

The Lords Commissioners of Her Majesty's Treasury, have prescribed the following conditions under that section.

CONDITIONS.

1. The Colony shall provide by legislation for the pay- ment out of the revenues of the Colony of any sums which may become payable to Stockholders ander any judgment, decree, rule or order of a Court in the United Kingdom. (See sections 3 and 4 of the Ordinance.)

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