CO129-509-7 Proposed amendments to Hong Kong and Shanghai Banking Corporation 15-2-1928 - 25-9-1928 — Page 12

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in Their opinion undesirable that the power to issue

notes should be unlimited in time.

In this connection I am to refer to the

Colonial Office letter of 24th February 1921

(6716/1920-21) and the enclosed despatch from the

Governor of Hongkong in which attention was drawn

to the possible expediency of introducing a

Government note issue at some future date, I am

accordingly to suggest that the privilege of Note

Issue should be extended in the .case both of the

Hongkong and Shanghai Bank and of the Mercantile

Bank of India to 1939, in which year the privileges

granted to the Chartered Bank of India, Australia

and China expire.

2. It should be a condition precedent to the

approval of the Ordinance that the Hongkong and

Shanghai