CO129-476 - Acting Governor Claud Severn & Governor Sir Stubbs - 1922 [8-12] — Page 338

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6.

of its rescission should be held over pending his return.

It will hardly be gainsaid that circumstances may arise in which the existence of a note issue up to fifteen million dollars unsecured by any cash deposit may lead to incalculable damage both to the Colony and to British trade and prestige in the Far East; and I consider that the Chartered Bank should be immediately required to place in the custody of this Government a cash security in respect of its Hongkong issue under terme at least as rigorous as those which apply to the note issue of the Hongkong and Shanghai Banking Corporation. In the meantime

I do not intend to permit the bank to reduce the dollar

reserve which at present amounts to $4,600,000.

I have the honour to be, sir,

Your most obedient humble servant,

Chudlevem

Officer Administering the Government.

(*1982) WA 28817–84. 80,000 112 TA