Ichorst on how it could be
do
ravied
recht worder a foot
Treway Juuartie
Vague es
to a
Walter
4/1
Coreference. lor might
discuss at it the question of financing
H. Kong
Treasury billy
The loan by until I apeau to the advantages
a public loan can be issued
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public loan
G.E
6.627
ather
ALL COMMUNICATIONS
TO BE ADDRESSED TO THE
CROWN AGENTS FOR THE COLONIES.
THE DATE OF THIS LETTER BEING QUOTED
CROWN
ACENTS FOR
23082
15 DEC ce
AND THE FOLLOWING REFERENCE: A/D. Hong Kong 418.
TELEGRAMS. "CROWN, LONDON." TELEPHONE. 7730 VICTORIA,
sir,
4. MILLBANK,
WESTMINSTER,
233
LONDON, S.W. 1.
14th. December 1926.
I have the honour to acknowledge the receipt
owledge
For
of your letter of the 30th. November, NO, C.20132/26, forwarding a copy of a despatch from the Governor of Hong Kong on the subject of arrangements for financing the Shing Mun Valley Waterworks Scheme.
2.
In reply, I have to state that it may be possible to finance the works by means of a "direct loan" es suggested by Sir C. Clementi, but there are three points
on which we should be glad to have further information, viz:-
(1)
(2)
(3)
3.
What is to be the currency of the loan?
Is the amount of the loan
large for a "direct loan"?
-
say £350,000 too
In view of the situation existing at the present time in the Colony is the security offered by a loan for Hong Kong such as to justify us in investing in it the money of other Colonies?
With regard to the first point, we observe tnat Sir C. Clementi states in paragraph 7 of his despaten that when the present boycott is lifted, renewed prosperity may enable the suggested loan to be repaid from revenue. This seems to indicate that a loan of a comparatively short currency may suit the Colony. If that is so, and if the loan can be made redeemable in 1940, i.8. in about 13 years, such a currency would be very suitable for a "direct loan"
e Under Secretary of State,
Colonial office.
&3/