CO129-605-5 Government loans 4-2-1948 - 8-1-1949 — Page 64

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4.

that

Suggestion has been made for registration of proposed premium bonds might detract from their popularity. Grateful for your early comments on this also. Premium element in such bonds might render them less liable to exchange control leakage, if in bearer form, than ordinary bonds. Matter is being further examined, but view now held here is that registration would 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 the country under General Loan and Inscribed Stock Ordinance 1913, inscribed stock would be necessary as issue of any form of bearer securities is prohibited by Section 10 of United Kingdom Exchange Control Act 1947 For your information, eonsideration is being given-

to amendment of Colonial Stock Acts to provide for registration. Either Inscribed or registered stock is unobjectionable from exchange control aspect.

6. Minor points arising from Ordinance ara added for your consideration and amendment if desired;-

Section 7 (5)

Following more definite version

of first four lines may be preferred.

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

Either inscribed or nycotinal stock is unobjectionable from

est

change control aspect.)

7. Grateful for cop

PROSPECTUS

of prospectes

15

Ayaxpedit

by

and

report

arcanet's

(9/ banks

subscribed

6/ general public.