مجموعة ٣٠/ ٢٢٤ "ترتيبات العملة في المشيخات العربية في الخليج الفارسي." [ظ‎‎١‎٩‎١] (٦٢٠/٣٩٧)

8
operations mainly by borrowinginthesterling c an ^ es>
the security of e ua ^ nt9e ® !t^^^ 0 „pani a s may
It is felt that such non-resident compa • area
reasonably be expected to remit to^a.^ the . r
the greater part of the larl '_ ‘ haV8 beea taken in the
subsidiaries. Additiona p ^ . t loans (guaranteed
Exchange Control Act to ensure that no |f ries of
or otherwise) are made ion
non-resident companies without perm
Accounts".
Reg.3C(l)
" 3C(1A)
" 3F 2(b)
(vi)
Accounts .
The settling of property or an interest therein on non- Reg.3BA
residents other than by willo
resiaeiih-o ^
, ^ -t-ho future what is now contrary to
(vii Agreements to do in the niture vmau
fho (Finance) Regulations.
- p£»cr - QR
4 ^WRTRTr.TTOWS ON TH!!I V/ITHDRA'.V.Al BY NOH-RRSIDENTS OF ujiPITAL
ASS5TS IH ^ UNITED KihCDUJJ
in order mainly to prevent withdrawal by non-residents
of pre-war capital invested in the United Kingdom, the following
measures have been introduced
(i) The sale or transfer in the United Kingdom of securities Reg e 3A(l)
non-residents is prohibited except with permission.^
Permission to sell would not normally be given except ior
the ourpose of reinvestment in certain British Government
securities or in other sterling securities which are not
redeemable at a date earlier than the maturity date Ox
the securities sold or ten years from the date of
purchase, whichever is earlier. "Switching” into very
short-dated securities is not allowed because this would
provide an easy means of circumventing the restrictions
on capital payments since no restrictions are imposed
upon the transfer outside the sterling area of the
redemption proceeds of sterling securities.
Most sterling area countries impose restrictions on the
sale of securities in their territory by non-residents
similar to those in force in the United Kingdom.
(ii) As it was considered impracticable to restrict sales in
the United Kingdom by non-residents of other assets than
securities, the proceeds of sale of certain of these
assets are blocked.
Under the Defence (Finance) Regulations the Treasury (or Reg.10(2)
the Bank of England on its behalf) are given the " 3E
power, when dealing with applications to transfer sums
to non-residents, to approve subject to the condition
that payment is made only to a Blocked Sterling Account.
When payment is so made the crediting of the blocked
account constitutes a good discharge for the amount
paid.
Balances on Blocked Sterling Accounts are available only
1 or investment in certain British Government and other
sterling securities, although exceptions are sometimes
made where refusal to allow the balance to be used to
select remittances to the accountholder or to meet his
commitments in the sterling area would cause him real
hardship, e.g., destitution. Funds blocked in most
s erling area countries may be transferred to blocked
account m the United Kingdom.