CO129-529-2 Currency- note issue 31-1-1931 - 31-1-1931 — Page 29

A/474.

FROM THE CROWN AGENTS TO THE COLONIAL SECRETARY HONG KONG.

29

CONFIDENTIAL

14th October 1931.

8.10.31

Sir,

I have the honour to refer to your telegram of the

5th March, 1930, informing us that the storage of bar silver

by the Hong Kong and Shanghai Banking Corporation to our order

with the Westminster Bank on account of the note issue in

Hong Kong was approved. We notified the Hong Kong and Shanghai

Banking Corporation accordingly but heard nothing further of

the proposal.

2. We have now, however, been approached by the Hong

Kong and Shanghai Bank and I enclose a copy of a letter from

Sir Newton Stabb asking if arrangements could be made for the

Crown Agents to take over the custody of 30,000,000 ozs. to 40,000,000 ozs. of bar silver as security for the Bank's note

issue in Hong Kong.

3.

We have been in communication with the Royal Mint,

and understand that they would be willing to store up to 40,000,000 ozs. of silver 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. From enquiries which we have made, we are of opinion that these charges are reasonable, but we have no information as to whether the expenses are to be borne by the Colonial Government or by the Hong Kong and Shanghai Banking Corporation. We shall be glad if you will be good enough to let us have your instructions by cable, since the Bank wish to commence delivering the silver at an early date.

I have the honour to be,

Sir,

Your obedient Servant,

(Sgd.) P.H. Ezechiel.