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time has not permitted of reference being again made to the Colony to procure the passing of the legislation which we had contemplated in the first instance.
3. I would here explain that the money which we have temporarily lent to the Colonial Government is in course of being required for other purposes and will all be required not later than the beginning of May and we ascertained from our Bankers that in view of the stringency which at present exists in the money market they hoped that we would keep our requirements for temporary advances within the lowest possible limits. Our Brokers had also warned us that many fresh issues of Loans are impending and that unless we acted with promptitude we might find that we were anticipated by other issues and that the Hong Kong Loan might in consequence have to be postponed indefinitely.
4. In those circumstances it became necessary to consider whether the Loan should not be raised in the shape of Stock, as prescribed by the provisions of the Ordinance No.11 of 1905 and further whether the issue could be made on such conditions as would not be likely to prove very disadvantageous to the Colony in the event of the Chinese Viceroy exercising the option which is given to him in the agreement of repaying at the end of five years the whole of the advances made to him which might then be outstanding.
5. Most fortunately in connection with the previous Loan of the Colony the power exists to pay off the Loan in April 1918 and this date is only 24 years after the expiration of the period at which the completion of the repayment of the advance made to the Chinese Viceroy is anticipated.
An
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