TNAG-0455-FCO40-520-Minting-of-new-coins-for-Hong-Kong-1974 — Page 40

CONFIDENTIAL # 2

機密

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XCC(74)66

(a) the 20 cent and $2 coins should be introduced as

soon as possible, both for the convenience of the public and to secure the cost advantage from a consequential larger reduction in the circulation of 10 cent and $1 coins; and

(b) the introduction of the revised $1 coin should be

delayed until after the circulation of this

denomination has been reduced by the introduction of the $2 coin.

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follows:

The committee proposes that the timetable should be as

August 1975

August 1976

August 1977

Introduction of 20 cent and $2 coins

Replacement of existing $1 coin

Replacement of existing 50 cent coin, and of the $5 banknote by a coin,

The month of August has been chosen in each year because the coin circulation is then usually at its lowest. The storage space needed for the changeover is expected to be available during the suggested timetable period, but not necessarily thereafter, It is desirable, therefore, that a decision on the committee's proposals should be taken in good time, so as to allow for the lengthy preparations for a large issue of new coins in August 1975.

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No date has been proposed for one further stage fore- seen by the committee. This is a reduction in the size of the existing 10 cent coin, which would become possible if the 5 cent coin disappeared from use. The matter need not be considered

now.

The cost

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The cost and/or benefit to the Government of the proposed

changes can be considered under four headings:

(a) the once-for-all costs of the changeover;

(b) the cost of maintaining the coinage;

CONFIDENTIAL #2