CO129-605-5 Government loans 4-2-1948 - 8-1-1949 — Page 45

and we could not ask Hong Kong to blook any interest payments.

I feel, therefore, that we should not agree to the issue of unrestricted bearer bonds while there are no provisions for the registration of such bonds, or they are compulsorily deposited.

I realise that any attempt to register these bonds would probably result in their not being taken up, but as most, if not all of the bonds will be purchased by residents in Hong Kong, it might be possible to provide in the terms of issue for the bonds to be issued only to residents of Hong Kong, and the interest and redemption monies to be payable only to such residents or persons who were resident in Hong Kong at the time they purchased the bonds.

I should be glad to hear from yourself and Kelvin-Stark, to whom I am copying this letter, whether some action on these lines could be taken.

Tower of

DEFENCE & GENERAL 23 NUv 1948. REGISTRY

Yours sincerely,

1?

lã