TNAG-0455-FCO40-520-Minting-of-new-coins-for-Hong-Kong-1974 — Page 89

CONFIDENTIAL

Organisation

2 -

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Comments/Suggestions

of any new coins should be given to

interested parties as early as possible.

Consideration should be given to providing financial assistance to those organisations

involved in storing, distributing and administering the coinage and to companies

which have incurred substantial change-over

costs. An early decision is required, for

costs will inevitably escalate.

(iii) 20 (bronze) and $2.50 and $5 (cupro-nickel)

coins should be added to the existing range.

The reasons therefor are as follows :-

(a) The existing denominations make the

defrayal of trifle expenses cumbersome

involving at times the carrying of quite a load of change because of the

limited denominations.

(b) Under the prevailing inflationary

conditions, the purchasing power

of money decreases gradually.

It

seems desirable that coins of higher

denominations be minted to facilitate

carry and defrayal.

(c) Indeed, the range of coins in

circulation should be closely related

to our way of life. A quarter dime (256) is useful only for paying one

first class passage on a Star Ferry

and its use is restricted whereas a

20-cent coin can pay for a tram or

bus ride on the Island as well as a

copy of a vernacular newspaper.

To implement this proposal, there are two

alternatives :-

G.F. 323

CONFIDENTIAL

/Scheme I......

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