CO129-529-2 Currency- note issue 31-1-1931 - 31-1-1931 — Page 20

o. CONFIDENTIAL,

•

36

20

GOVERNMENT HOUSE,

HONG KONG. 27th November, 1931.

Encl. No. 1.

Aned (35 Jafo and to CA. (B6)

Sir,

I have the honour to enclose a copy of a

communication which has been received from the Crown

Agents for the Colonies on the subject of the storage of a quantity of bar silver which it is proposed should be held in London as security for the Bank's

note issue in Hong Kong.

2.

The conditions governing the security for

note issue are set out in Section 11 of the Hong Kong and Shanghai Bank Ordinance No.11 of 1929.

Sub-Section

4 of Section 11 deals with the deposit of security in places outside the Colony "subject to such conditions as may at any time and from time to time be approved by the Governor". Sub-Section 3 on the other hand provides for the security held in the Colony being kept in the custody of the Colonial Secretary and the Coloni al

Treasurer.

3. I am advised that the primary obligation to pay for storage charges under these Sub-Sections (as well as under Sub-Section 2 which deals with the security for the ordinary note issue) lies on the persons who hold the security; but that as the right to have the security held

outside

THE RIGHT HONOURABLE

SIR P. CUNLIFFE-LISTER, G.B.E., M.C., M.P.,

&C.,

&c.,

&c.

Page 20Page 21