CO129-598-2 Tai Lam Chung Reservoir Project 24-6-1948 - 3-3-1949 — Page 72

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

Alt. on 54126/w48

Code

DUPLICATE

TO HONG KONG(81r A. Grantham)

Sent 2nd December, 1948.

17.00 hrs.

No. 1245 Confidential

1.

Your savingram No. 235 of 7th April, 1948.

Rehabilitation Lean Ordinance.

I agree that no action should now be taken to require registration er deposit of First Issue Bonda,

2. Need for utmost stringency in Exchange Control makes it necessary, however, to consider what can be dene As regarda subsequent issues of Rehabilitation Lean or ather loan which might be required.g. for Tai Lam Chung reservoir project.

3. It may be expected that events in China will render comparative security of a Hong Kang Goveranent lean more attractive than it has been and that other opportunities for investmenta will be over. In these circumstances would it be pessible to issue registered bonda?

24. Alternatively it has been suggested that it might be possible to arrange for bearer bonds to be issued only to residents of Hong Kong and for interest and redemption monies to be payable only to such residente or to persons who were resident in Hong Kong at the time they purchased the bonds.

4 above.

Flosse let me have your early views on 3 and

Copies sent to:-

Treasur

10

H

Bank et Zoglavá

(3.

H.A.. Barshall Hr. Russell Edmonds Mr. J.H. Kartiu

Mr. Portenore

79

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