CO129-605-5 Government loans 4-2-1948 - 8-1-1949 — Page 62

Suggestion has been made that registration of proposed premium bonds might detract from their popularity. Grateful for your early comments on this also, Premium element in such bonds might ronder them less liable to exchange control leakage, if in bearer form, than ordinary bonds. Matter is being further examined, but view now held hero is that registration

ould be necessary to obviate danger of leakage.

5. Section 5. If it were eventually agreed That any part of the loan should be raised in this country under General Loan and Inscribed Stock

dinance 1913, inscribed atock would be necessary do issue of any form of bearer securities is prohibited by Section 10 of United Kingdom Exchange Control Act 1947. Either inscribed or registered stock is unobjectionable from exchange control aspect.

6+

Minor points arising from Ordinance are

added for your consideration and amendment if desired:-

Section 7 (5). section 7(5):

Pollowing more definite

version of first four lines may be preferred.

"The Governor shall in the half year ending op the date specified in the prospectus of any loan iagued under the terms of this Ordinance as that on which the first contribution to the sinking fund shall be taken and in each subsequent balf year appropriate out of" etc.

Section 7 (6). Use of sinking funds for purchase of bonds need not necessarily be limited to a price not exceeding par. Even above par, bonds might still be the best investment.

1.

Grateful for copies of prospectus and report

as to amounts subscribed by

(a) banks

(b) general public.

Copies sent to:-

Crown Agents

www

Kr. A.H. Hicks.

Crown Agenta for the Colonie8.