FO371-24687 — Page 151

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·F.5339/176/10..

Ift tel:

to

Mr Broadmead

i

но

(Shanghai)

1337 cypher

UFEK de prutal 2.

copy to wade сору

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FILE

F

Draft telegram-

8.12 3124s

10.

"Broadmead (Shanghai). 85

Following for Financial Commissioner from Treasury.

དོ

FS339

Your telegram No. 1027. Text of new Regulations sent to you by mail today.

2. Your telegram No. 1028.

New Regulation requires all persons in U.K. who control companies incorporated elsewhere to ensure that holdings of currency securities etc. of such subsidiaries are notified to Bank of England and offered for sale if Treasury so desire.

Where foreign subsidiary is controlled by company whose shares or loans are quoted on a U.K. stock exchange Regulation does not apply to such parent company unless Treasury so direct specifically.

We do not consider that similar measures should be imposed by King's Regulation in Shanghai, i.e. to deal with companies under the control of British subjects residing in Shanghai. If however you suspect forestalling action by local subsidiaries of U.K. companies which enjoy the exemption referred to in the inmediately preceding paragraph, please give particulars.

DEC

FOREIG

PM.

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