169
TELEGRAM from the Officer Administering Government of Hong Kong to the Secretary of State for the Colonies. (Received Colonial Office 1.40 a.m. 8th August $19)
My despatch 16th December confidential Owing to increased cost of building erection of houses for Europeans is practically at a standstill and existing accommodation is taxed to the uttermost. An important local land and building company is Tregotiating for sale to Japanese subjects of well situated site in upper levels of Victoria but offer to erect forthwith six 1st Class flats for Europeans at cost of $150,000 if Government of Hong Kong will advance frds at 5% to be repaid in fifteen years. They also offer to erect 18 smaller flats in Kowloon at cost of $225,000 on same terms they agree that rentals would be limited to nett return of 8% on total outlay and offer 1st Class security I strongly
(I grant of) tecommend
loan on these terms and should be glad to receive an early reply to my telegram.
SEVERN.