CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 665

the 5,000,000 dollars asked for in this telegram) from

the Straits Settlements Government account to the

account of the Hongkong and Shanghai Bank, this sum

to be deposited with the Crown Agents by the Bank ae

part security against the excess note issue of the

Bank.

I then explained that the programme for

meeting the demands for the two further sums of

5,000,000 dollars indicated in the telegram will be

as follows:

the next 5,000,000 dollars would be provided by

transferring the balance of the Straits loan

(£400,000) and that we should then commence to draw

on the £500,000 which is being provided by the Hongkong and Shanghai Bank; that is, in the first place a sum of £200,000 would be drawn on.

The final instalment of 5,000,000 dollars

would be provided by drawing the remaining £300,000

of the Hongkong and Shanghai Bank loan and the sum

of £600,000 (if required) would be made up by

drawing £300,000 from the West African Currency

Board.

I then rang up the Crown Agents (Mr.Davis)

and asked him to arrange for a transfer of this first

£600,000/this morning, and to let Sir Newton Stabb

know officially that this transfer was taking place.

I also outlined the further programme contemplated as

indicated above.

Mr.Collins then confirmed my telephone

message to Mr. Davis by a minute asking him to

proceed in advance of our official letter.

Mr.Davis has now rung me up to say that the

necessary

from the fold cav on of of the Currency Comm

(4435-3)

necessary instructions have been issued to the

Bank of England, & the ItK. 45. Bank informer.

Mr.Collins then drafted the

accompanying draft telegram to the Straite Settlements. When this telegram has gone the papers should be re-circulated without delay to the Department for drafts to Hong Kong and the Crown Agents and for other action required on these papers.

658

I may mention here that Sir Newton Stabb told me that he had not yet heard officially that the offer of the Bank to lend £500,000 had been

accepted. I promised that this would receive

attention.

When I returned from seeing Mr.Collins

there were several urgent papers requiring attention,

so I was unable to send this on last night.

Li S. Wilson

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