obtaining

There would be much delay in

sanction to loan by His

Majesty's Goverment and such loan or

guarantee of loan would require Act of

Parliament. The matter is most urgent

and in view of position shewn in enclosure

to your Confidential despatch of 20th

August and especially of large surplus

in currency reserve it has been

suggested to me that Straits Settlements

might be willing to come to the rescue

of Sister Colony by lending up to one

and a half million sterling on say

twenty year five or five and a quarter

per cent bonds. Advances would be made

in Sterling through Crown Agents in

blocks as required and capital might be

paid in fixed instalments if desired.

→ investment would constitute a

231

be amply secured by the whole assets

of Hong Kong a special ordinance being

passed there to charge Hong Kong

resources. It is hoped that remainder

of loan of three millions required could

be borrowed from reserve funds in other

parts of the Empire.

J

Matter has been discussed

with Guillemard who without raising

objection wishes it to be referred to

you and Pount bey.

I will defer making any

representations myself till I learn how

you view the proposal. Please reply

at earliest possible moment.

AMERY

tion of your opium revenue reserve

nd would have convenient length of

barrency for that purpose and would

be

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