CO129-529-2 Currency- note issue 31-1-1931 - 31-1-1931 — Page 28

A/474.

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FROM SIR NEWTON STABB TO MR. EZECHIEL.

9, Gracechurch Street,

28

London, E. C. 3.

8th October 1931.

Dear Mr. Ezechiel,

With reference to our conversation of yesterday,

Grayburn writes me that he wishes to hand over to the Crown

Agents for the Colonies as Trustees for the Hong Kong Government

Bar Silver to the extent of ozs. 30 to ozs. 40 million as

security for the Bank's note issue the silver to be delivered

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during the course of the next two or three months.

I understand that the Royal Mint would receive and

store this silver for the Crown Agents for the Colonies for an

indefinite period at a charge of 1s. per ton per month, in

addition to which there would be handling charges of 4s. 6d.

per ton on delivery and 5s. per ton on release. I take it

that such charges would be defrayed by the Crown Agents for the

Colonies and recovered from the Hong Kong Government, but I

think you mentioned that the question of expenses was a matter

for arrangement between the Bank and the Hong Kong Government,

Will you kindly let me know as soon as possible when

we may start delivering this silver, as we already have a large

quantity on hand for the purpose.

In case you have to communicate with the Hong Kong

Government before replying perhaps you will request that an

answer be sent by wire. I am forwarding a copy of this letter

to Grayburn so that he can discuss the matter with the Hong Kong

Government.

Yours very truly,

(Sga.) N.M. Stabb.