CO129-438 - Public Offices - 1916 — Page 302

1

terms upon which foreign banks should be allowed to

do business in the Tnited Kingdom and within the pi

generally may be said to be open to reconsideration,

it does not seen desirable that the Government of a

particular Colony should make itself responsible for

licencing existing foreign banks within ite area or

for deciding in the event of an application for a

licence by a new foreign bank whether or not such a bank should be opened. In the two cases now in quest in Hong Kong the objections to the opening of branche by the banks concerned appear to be partly political partly financial. The latter kind of objection shows clearly that the policy of licencing do es involve som Govemment responsibility for financial soundness, rni the political objection seems to be one which would

more suitably be dealt with by diplomatic means than legislation ostensibly resting or economic grounds.

In view of these considerations, and subject to the views of the Foreign Office on the diplomatic aspect of the question, " Lords would suggest that, Mr. Bonar Law (who has fuller knowledge of the circum- stances of the Colony with which They are necessarily not precisely acquainted) should see objection the Governor of Hong Kong should be discouraged from intro ducing legislation of the kind proposed by im.

I am, Sir,

Your obedient Servant,

M. Bradbury

un

Treasury

1916

30 Aut?

Last previous l'aper.

Coby

1 Nov.

Off with coff, above tel. 9.0.9 Dec 17.

come to Gov. 2+ conf 3 Ver.

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