CROWN
AGENTS
FOR
THE
ALL COMMUNICATIONS
TO BE ADDRESSED TO THE
CROWN AGENTS FOR THE COLONIES.
THE FOLLOWING REFERENCE AND THE
DATE OF THIS LETTER BEING QUOTED.
A/239.
TELEGRAMS: CROWN, LONDON.
TELEPHONE: 7730 VICTORIA.
COLONIES
RECEIVED 31 MAY 1932
CONFIDENTIAL.
छ
4, MILLBANK,
7
79
WESTMINSTER,
LONDON, S.W.1.
30th May, 1932.
ENCLOSURE.
Sir,
2.
I have the honour to acknowledge the receipt
of your letter No.92639/32 of the 5th May forwarding
a copy of a memorandum dealing with the loan finance of
Hong Kong.
2.
The Ordinance authorising the Public Works
3.238/27 Loan 1927 of $5,000,000 (No.14 of 1927) provided for
Coly Otty
repayment not later than 1938, and the contributions
to the sinking fund appear to have been fixed on the
basis of redemption in that year. The proposal to
convert this loan at the earliest optional date involves
replacing it with a loan of a further 19 years currency;
but as the extended period amounts only to 30 years,
and since the money has been spent on works of a
permanent character, we see no objection to the proposal
on that ground, and we recommend that the Governor
should be authorised to arrange in due course for the
conversion of the loan to one bearing a lower rate of
interest. No period of notice of the intention to
convert the loan is specified in the Ordinance and it
may be considered inadvisable to make a public statement
until it is absolutely necessary in case it should be
found when the time comes for arranging the conversion
/that
The Under Secretary of State,
COLONIAL OFFICE,
r.
S.W.1.
CA.