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money would be advanced as required, advances being cancelled as loans were repaid, a procedure which is not possible under the proposed arrangement with the Hongkong & Shanghai Banking Corporation. Direct borrowing is therefore slightly more advantageous in this respect, but this advantage is off-set by the higher rate of interest, and the terms are to all intents and purposes practically of equal value.
Applications for advances are being scrutinised by a Committee consisting of the Hon. Treasurer, the Hon Secretary for Chinese Affairs, the Crow Solicitor, Representatives of
the Hongkong & Shanghai Banking Corporation, and
the Chartered Bank of India, Australia & China,
a chartered accountant, the Chairman of the Chinese
General Chamber of Commerce, and one British and
one Chinese merchant. The applications received
to date are largely in respect of operations
which are outside the intended scope of the loan,
and it is not yet possible to arrive at any
accurate estimate of the amount of money which
will eventually be required.
I have the honour to be,
Sir,
Your most obedient humble servant,
7. E. Stutter
7.8.
Governor
&0.