CO129-339 - Acting Governor May Governor Nathan - 1907 [1-3] — Page 580

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Enclosure 2.

576

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13567

Per 17 APR

Hongkong and Shanghai Eat Corporation,

7th. March, 1907.

Sir.

I have the honour to acknowledge receipt of your

letter of the 5th. instant (139/1907) enclosing copy of a telegram from

the Secretary of State for the Colonies regarding the proposed increase

of the authorized note issue of this Bank and enquiring whether the

condition set out therein is acceptable.

As the reaning of Section 2 of uriinance 1 of

1999, referred to in the telegram from the Secretary of State for the

Colonies, was not quite clear to us, we wirgi yesterday to our London

Office as follows:-

"What is meant by Trustees in section 2 Orlinance *1 of 1999 ? Does Colonial Office recognize that under it 6. & "3. B. C. have the option of depositing security either with "the Crown Agents for the Colonies or dongkong Government at

any time ?".

and have today received the following reply:-

"With reference to your wire of today, we have "seen Colonial office who inform us that trustees in all "probability will be the Hongkong Government. Colonial Office "recognize that you will have the option of depositing coin "or security with mongkong Governreat or Crown Agents for the "Colonies at any time".

With the telegram forwarded in your letter under

reply, and the telegram quoted above from our London office before us

we understand that His Majesty's Government now approve that the Bank's

authorizei note issue will be $15,000,000 of which $10,000,000 is to

be covered by the leposit, at the option of the Bank, of security with

the Crown Agents for the Colonies or with the hongkong Governrent or

partly with such Crown Agents and partly with the Hongkong Governsent

Mr. F. m. May, C.M.G., Colonial Secretary, Hongkong.

equal