TNAG-0455-FCO40-520-Minting-of-new-coins-for-Hong-Kong-1974 — Page 74

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CONFIDENTIAL ##

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CHAPTER IV

THE CHANGEOVER

Broad time-table

67.

It is quite impracticable to introduce all the changes we

have recommended in paragraph 65 at one time and the establishment of

the new range we propose would have to be phased over a number of years. We believe that the greatest benefits which will result from our proposals

will be the reduction in the numbers of 10 cent and $1 coins in circulation

following the introduction of 20 cent and $2 coins and the convenience to

the general public that these additional denominations will provide. We

recommend, therefore, that the 20 cent and $2 coins be introduced first

and suggest August 1975, as a target date. Following this we feel the next logical step would be to introduce the new one dollar coin in August, 1976, by which time, as a result of the introduction of the $2 coin, a

large number of the old one dollar coins would have been taken out of circulation and the effective demand for $1 coins substantially reduced. The remaining changes, that is the introduction of a new 50 cent coin and the replacement of the $5 note by a coin of this denomination, we recommend be made in August, 1977.

Withdrawal and storage of coins

68.

The month of August has been chosen because it is around

this time of the year that the number of coins in the hands of the

public is at its lowest.

69.

At the time of writing this report the Government has available

two vaults for coin storage. It is expected that a further vault in the central area will be available in December, 1974, and we understand that

this extra space should double the present storage capacity. This factor is of considerable significance in determining the implementation dates of

our proposals. This additional storage space will in 1975 and 1976 provide sufficient capacity for the changeover, but if the changeover were delayed the space would probably come to be used up in providing for the normal

growth in circulation.

G.F. 323

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