CO129-342 - Governor Lugard & Public Offices - 1907 [11-12] — Page 421

-)

In the reply to this Letter the following

Number should be quoted.

3554

07

Sir,

REC

C.O.

7688 416

REG 1 MAR 07,

TREASURY CHAMBERS,

18 February 1907.

36 ple

with he

10004/16

With reference to Mr. Lucas's letter of the 21st

for instant (No.6201/1907), the Lords Commissioners of His

Ahong. Majesty's Treasury direct me to signify Their concurrence in the proposal of the Secretary of State for the Colonies that the guarantee fund to be provided by the Hong Kong and Shanghai Banking Corporation in respect of their issue of Notes beyond the present normal limit of $10,000,000 may be accepted in the form of approved securities, instead of

in coin or bullion as contemplated by this Board's letter

of the 29th ultimo.

The amount of Notes to be issued against the

deposit of an equivalent sum in securities under this

arrangement must be limited to the amount of the increased

capital of the Bank paid up from time to time; and any

excess of issue over the limit so determined must be

covered by the deposit of coin or bullion.

I am to add that Their Lordships are in entire

agreement with the Earl of Elgin as to the inadvisability

of allowing any further increase of the Bank's issue on the

terms of one-third security. Such an extension is the

more to be deprecated when it is applied for on the ground

The Under Secretary of State,

Colonial Office.

that