299
No.
17
87.
HONGKONG.
CORRESPONDENCE IN CONNECTION WITH THE PROPOSED LOAN.
Presented to the Legislative Council, by Command of His Excellency the Officer Administering the Government,
on the 25th March, 1887.
SIR,
Crown Agents for the Colonies to Colonial Secretary.
DOWNING STREET,
LONDON, 14th February, 1887.
Referring to your letter of the 23rd September last, No. 1549, I have the honour to state, for the information of the Governor of Hongkong, that we have abstained from issuing 4 per cent. Debentures under the provisions of Ordinance No. 11 of 1886, as we have been able to obtain, temporarily, funds as required on more advantageous terms:-Our advances now amount to £138,000,--they are as follows:
14th January, 1886,. 20th
32
9th March,
.£10,000
13,000
5,000
30th
6,000
>7
20th April,
20,000
22
14th May,
2,000
30th June,
5,000
>>
30th July,
27
10th September,
13th November,
4,000 30,000.
8,000
21st December,
**
10th January, 1887,
10th February, "
5,000
25,000
5,000
£138,000
For these advances the Colony has paid at Bank rate from day to day, which has varied, since the 14th January last, from a minimum of 2 to a maximum of 5 per cent.; the average rate which it has cost the Colony is 3 per cent.
Should our expenditure during the current year amount as usual to about £80,000, the proceeds of the proposed loan of £200,000 after providing for the repayment of the temporary advances of £138,000, will not be quite sufficient to provide us with funds to the end of the
year.
In the report dated 16th September last, on the Estimates for 1887, which accompanied your letter, par. 9, it is stated that the $55,000 for interest is made up in the following manner, namely: interest on $400,000 (already advanced by the Crown Agents) at 7 per cent. per annum $28,000. Interest on $600,000, for 6 months, at 7 per cent. per annum $21,000, with $6,000 added for Contin- gencies.
The Hon. The COLONIAL SECRETARY,
&c.,
&C.
Hongkong.