CO129-444 - Governor Sir May & Acting Governor Claud Severn - 1917 [10-12] — Page 182

I

could not be charged with a departure from

the terms of the issue; which might be the CABE

if the proposal were that the S.F. should be

utilized at an earlier date than that laid down

by the Ordinance (31. Oct.1921) for the

alternative method of redemption vizt by drawings. See Sec 2 (3) of Ordinance 17 of

1917.

We assume that the Government will pro- bably make it known that they are prepared to purchase bonds at an earlier date than the

holders were led to expect, so that not only

the Hong Kong and Shanghai Bank but also all

other holders may have an opportunity of selling their bonds if they wish to do so. It seems

to us essential that this should be done.

Mr. Grindle

7/1/18

Then approve by tel. subject to the

assumption in the last par, of Sir R. Antro-

bus's minute.

AMC 2.1.18

8.1.18

Copy of this and our reply to C.A. L.F.

5.9.8.1.15

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352.

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Sir,

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63744

178

REC

BEG 31 DEC:7

GOVERNMENT HOUSE.

HONGKONG. 7th. November, 1917.

Referring to my despatch No. 217 of the

26th June, I have the honour to ask your permission to

amend the War Loan Ordinances, 1916 and 1917, in order

to make it clear that the Governor may approve at any

time of the purchase by the Government of bonds of the

Hongkong War Loan in the open market for the purpose of

redeeming the loan.

2.

It is proposed to employ the sinking

fund for this purpose, buying up annually stock in the

sum of $200,000; whereby the trouble and expense involved

in investing the sinking fund will be obviated. The

Hongkong and Shanghai Banking Corporation, who are by far

the largest holders of the stock, are prepared to sell

their holding on these terms.

3.

I shall be glad of your reply by telegraph.

I have the honour to be,

Sir.

Your most obedient,

humble servant,

RIGHT HONOURABLE

WALTER LONG, M. P.,

&c..

&c..

Governor, &c..