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(2) The rights of holders of coins already issued will have to be
preserved as far as possible, though opinions differ on
whether redemption rights or rights to exchange for current legal tender should be maintained in perpetuity.
10.1(3) In these circumstances, it is suggested that the aim of HMG
should be to set out guidelines that will fulfil certain criteria and
that may be adapted to suit the individual dependencies. How far such
guidelines can be pressed must depend on the constitutional and (perhaps more important) financial relationship in each case; but if
our assessment is that, in particular, the continuance of numismatic
programmes on existing lines involves HMG, in certain cases, in an
unacceptable degree of risk, then HMG must surely be entitled to take
defensive action. In that event, a compromise will have to be found
that both protects HMG and maintains the right of individual dependencies, in their own interests as well, sometimes, as that of
HMG, to benefit from the revenues available directly or indirectly
from numismatic coin issues.
10.1(4) One of the criteria should be the danger of placing too much reliance on this particular source of revenue, in view of the
unpredictability of the market, the large fluctuations in annual
receipts with the resulting difficulties in providing accurate budget forecasts, and the danger of becoming too dependent, over a period
usually of several years, on a single foreign commercial enterprise. If moderation is shown in the regularity and volume of issues, the
market may continue to be a significant source of revenue, though this does not depend on the dependencies alone.
10.1(5) But the primary need is to arrange matters so as to minimise
risks. To this end, it would seem reasonable to encourage those concerned to submit for scrutiny by HMG all draft contracts and
proposals for individual programmes well in advance of any deadlines that may be imposed by the promotional companies. In the past, territories may have been discouraged from so doing by the degree of
urgency asserted by the companies. In the cases where papers have been referred to London, there is nothing to suggest that delays brought about by close examination of proposals have been detrimental to the development of a particular programme. Closer involvement by HMG would also help to ensure that nothing is done to damage the
reputations of the dependencies, the UK or the Crown. An expression
of concern on this point would not be unreasonable, particularly in
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