CO129-463 - Governor Sir Stubbs - 1920 [10-12] — Page 403

N°

405.

C

PES

6716

REC 12 LB C

GOVERNMENT HOUSE.

HONGKONG. 29th December, 1920.

Treas

19449.

My Lord,

With reference to the Marquis of Crewe's despatch No.208 of the 22nd July, 1910, and subsequent correspondence, I have the honour to enclose copies of correspondence with the Mercantile Bank of India, Ltd. with regard to ite note issue, and to observe that its powers in this respect expire on the 29th December, 1921, in accord- ance with the provisions of Section 7 of Ordinance No.65 of' 1911.

2.

Under Section 13 sub-section 3 of Ordinance No.2 of 1866 the similar powers of the Hongkong and Shanghai Benk expire on the 13th August, 1929.

3. In view of the possible expediency of intro- ducing a Government note issue at some future date, I consider that the most logical course will be to extend the privileges of the Hongkong and Shanghai Bank and of the Mercantile Bank of India up to the 12th July, 1939, the date on which the privileges granted to the Chartered Bank of India, Australia and China under its 8th Supplemental Charter expire.

i 4.

Subject to Your Lordship's concurrence I there-

fore propose to introduce the necessary legislation to give

7

THE RIGHT HONOURABLE

VISCOUNT MILNER, G.C.B.,

&c.,

&c.

effect