CO129-605-5 Government loans 4-2-1948 - 8-1-1949 — Page 67

Wt. 23364/665. 8/47. 50,000. S. & S. Ltd.

C. O.

Mr.

Boss

27/2

27/2

Mr. Kelvin Stark

Mr. Palmer

Mr. Mayle Box V. Amish

Mr.

54127/4/48

Permt. U.S. of S.

Parly. U.S. S.

5/3

Secretary of State.

Your Reference....

DRAFT. CODE TELEGRAM

No.....Confidential

IMMEDIATE

Your despatch No.1 Confidential of

GOVERNOR,

73/ -/-/47

6th January 1948.

HONG KONG.

Rehabilitation Loan Ordinance.

FURTHER ACTION. ·

Copy to

A.H. Hicks (0: Agents)

And lugell (Trening ad lepele

(Treasury

1.

I understand first issue of

$50,000,000 has now been made. Since issue"

of loan was approved the balance of payments

and exchange position of sterling area has

deteriorated especially in recent months

and possibility of exchange control leakage

is an increasingly serious concern. It is

accordingly most desirable that all bonds

issued in Colonial territories should be

registered and not (repeat not) in bearer

form. Ordinance however includes provision,

under Clause 7 (7) for transfer by delivery,

thus covering both ordinary and presumably

any premium bonds if issued subsequently

under a subsequent Ordinance. Bonds would

therefore be in bearer form and provide

possibility of Exchange Control leakage.

Amendments to loan Ordinance to

isoned in Hong thing enable the bonds to be made registrable-

would be as follows:

2.

Section 7 (4) Omit all words after "the

day named in that behalf on the bond".

/Section