CO129-432 - Governor Sir May - 1916 [3-5] — Page 675

* CONFIDENTIAL.

Sir,

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REA 12 JUNTE

GOVERNMENT HOUSE,

HONGKONG.

3rd May, 1916.

With reference to my Confidential despatch of the

17th of March, I have the honour to inform you that I learn

from un-official sources that arrangements have been made in England by which Exchequer bonds in denominations of £5, £20, and £50 are made available for purchase through any Money Order Office in the United Kingdom. I am also informed that the test of exemption from payment of income tax on Exchequer Bonds is domicile and ordinary residence in the United Kingdom; and that a person is said to be domiciled in the United Kingdom if he has his permanent home there, or if having had his home there he has not abandoned all intention of returning to the United Kingdom; and that a person is said to be ordinarily resident in the United Kingdom if as a matter of habit he spends the greater part of his time there. I shall be glad to learn if this

information is correct.

2.

In anticipation that your answer will be in the

affirmative I venture to submit for your consideration the en-

closed Memorendum in which a scheme is suggested under which, with the co-operation of the Hongkong and Shanghai Bank whose Chief Menager I have consulted with a view to putting definite and simple proposals before you, Exchequer Bonds might be disposed.

of

THE RIGHT HONOURABLE

ANDREW BONAR LAW, M.P.,

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