London, June 6 "The reply of the Japanese Government to the British Government's enquiries regarding the Hua Hsing Commercial Bank has been circulated to Members of the House of Commons.
he reply says that the Hua Hsing Commercial Bank is organized under the laws of the "Reformed Government of the Chinese Republic.
Tt is not expected to act as a central bank. Its notes will be convertible into foreign currency, a reserve for which will be kept equal to, or more than the amount of the note issue.
The notes of the Bank will be additional to, but not intended to replace the old legal tender.
"No attack on the old legal tender is intended," the reply states. Notes of the Hua Hsing Commercial Bank will be accepted for the payment of all taxes and duties except Customs duties, which will be left as at present.
in the present circumstances, no trade or exchange control is deemed necessary, nor is it contemplated, the evea by Reuter, London fin-adds. anders ask why, if this is all the Hua Hsing Commercial Bank intends to do, was it necessary to establish it—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.