Sessional_Paper_1884 — Page 537

SIR,

30

The Treasury to the Colonial Office.

TREASURY CHAMBERS,

27th August, 1880.

;

I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you, for the information of the Secretary of State, that they will offer no objection to the proposal submitted in your letter of the 18th instant with regard to permit- ting the Hongkong and Shanghai Bank to establish a branch at Singapore, provided always that the permission be made contingent upon the Bank consenting to the unconditional withdrawal of its One Dollar Notes in the event of the Government deciding to issue a small note circulation.

If the Bank are willing to give such an undertaking, my Lords will at once take into consideration, the question of the specie reserve, which, in the present state of questions between the Bank and the Government, they have declined to examine.

But they cannot of course pledge themselves beforehand to meet the wishes of the

Bank.

It should, however, be clearly understood between the Secretary of State and this Board that no action will be taken either in sanctioning the extra establishment of the Branch, or in the examination of the specie reserve questions, until the undertaking of the Bank shall have been received.

The Assistant Under Secretary of State,

Colonial Office.

I am, &c.,

R. R. W. LINGEN.

MY LORD,

(11.)

Governor Sir J. Pope Hennessy to the Earl of Kimberley.

GOVERNMENT HOUSE, HONGKONG, 2nd November, 1880.

I have the honour to acknowledge the receipt of Your Lordship's despatch No. 53 of the 8th of September, 1880, transmitting to me a copy of correspondence between the Colonial Department and the Treasury on the proposal of the Hongkong and Shanghai Bank to establish a branch at Singapore and on the privilege temporarily granted by my predecessor to the Bank to issue One Dollar Notes in Hongkong.