1
|
discused. Technically
Cate
need only
Consult the Treasury about the note issues, but the position is such that-
the Govt. of Hong Kong can
hardly
liability of £600,000
without Treasury concerrrence. Hiking can afford it at present, but the
out-look in the cast is uncertain.
29.6.25.
G G
12.29/4/25
woz 29.6.25
TELEGRAM from the Governor of Hong Kong to the
Secretary of State for the Colonies.
480
Dated 29th June
(Received Colonial Office 10.10a.m., 29th June, 1925.)
Priority.
Run on Native Banks last week permission was
given to them to suspend operations temporarily this
permission must now be withdrawn immediately in order
to avert financial crisis. Managers of the Hong
Kong and Shanghai Bank and the Chartered Bank stated
that they are prepared to finance Native banks up to
$,000,000 dollars which they understand will save the
situation subject to the following conditions;
two banks will take over securities held by the Native
banke and will advance 1/3rd of the amount advanced
already on those securities subject to guarantee by
the Government that the two banks will suffer no loss
whatever including non-payment of interest, the Government to absolve them from responsibility in the
event of any securities not being in order, as matter
is of such urgency that time does not permit or
thorough scrutiny. The Government will also after
two years' pay on demand to the two banks any balance
outstanding. The two banks shall be permitted to
issue notes to the extent of these special advances
covered by approved sterling securities to be specially
deposited with the Crown Agents for the Colonies. Should
this entail the Hong Kong and Shanghai Bank holding less
than 1/3rd of the total note issue in silver, this
stipulation to be temporarily suspended. Chartered
Bank is not required to hold cover in silver and so is
not affected by this provision. Bhould heavy demand
for silver in exchange for notes arise Government to
take
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