425

be seen that a loan of £400,000 is to be -made to the Cape Colony at 3/2 p. c.

very favorable terius ; and d'exbuit

one

Colony

that what is done for on for Railways may be wich more done for another for Defences,

expecially

On

aud

such excellent security

as can be given by the Colony of

Đang trong

(Liquid) & Walker

Way 27 th 1883-

A LOAN

TO

Colonel

CRE

THE CAPE COLONY.-Sir Arthur Otway and the Chancellor of the Exchequer have introduced. a Bill authorizing the Treasury to lend £400,000 to tha Government of the Cape of Good Hope out of the Consoli dated Fund. The object of the loan is the speedy com- pletion of a railway from Hopetown on the Orange river to Kimberley. The sums are to be advanced from titan to time before the 31st of March, 1886, upon such evidence, of the progress of the railway works and of the money expended on them as the Treasury requires. Each advance is to be repaid within five years of the loan, the interest charge being 3 per cent, per annum. However, no advance is to be made until the Cape Government has, deposited an equivalent amount of colonial debentures. with an addition of 1-16th of the amount, these debantures bearing interest st 5 per cent. and having five years' coupons attached. If the Colonial Legislature does not within a reasonable time pass a law providing for securing the repayment of advances and for raising further funds, if Becessary, for the completion of the railway, the Treasury may refuse to make further advances, and on those already mado 5 per cent. is to be paid instead of 33 per cont. The same course may be taken, if through any cause within the control of the Cape Government the railway is not con- plated within eight months. Should the Colonial Legisla

pass A law impairing the priority of the law charge of the advances on the colony's general revenue, the law is to be void unless it contains a clanse suspending its operation until Her Majesty's pleasure bas been publicly signified in the colony. To raise the sums required for the advances, the Treasury are authorized to borrow money by the issue of Exchequer bonds or bills or Treasury bills for sums of got less than £100 each, to be repaid at par not more tha five years afterwards or less than one

ture

DRAFT.

The U.S.

U.S. of State War Office

MINUTE.

Mr.

Mr.

Lucas

Mr. Wingfield.

Mr. Bramston.

Mr. Meade. 3

(.

Sir R. Herbert. 3 Lord Dunraven. 3

Colonel Stanley. 3.

259

23. Himngling

12359

16851

way

J

4 Aug 85

I am directed by

Aug

the

In orig: to be ret ? 259. 4. June

pappers.

not be Sou

the

for S.g. Stat.

request

the 1:

folmics to you to lay before

Sof State for War the enclosed desp: from

શ્

the

Governor of Hongkong

on the subjec

of

subject of the defences of that colony 2. M. Jerritory Smith will not require to be

of the arrange.

reminded

the

+

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