Draft
CONFIDENTIAL
The Governor,
Hong Kong.
TELEGRAM
14
24
95/ Cassuming
same sum
Confidential.
Treasurer
Proposals for raising new loan and for
repaying 31% Stock 1918/43 have been under discussion
by Crown Agents and Treasurer. Loan issued here now
would be 32% at just under par and present time may
be regarded as favourable for raising loans.
thinks equally good terms can be obtained in Hong Kong
and recommends local issue through the medium of the
Hong Kong Bank. Crown Agents think that this might
be done by inviting tenders for a 3% issue redeemable
by annual drawings at par. With a currency of 20 years 3% at % is equivalent to 3% at par and with a currency
likepoise of 30 years 3% at 94 is,
is equivalent. Tenders for small
amounts would be considered and general public invited
to apply direct or through their Bankers. Co-operation
of chief Banks might be arranged so as to assist in
giving publicity. Small investors should be encouraged
and reasonable notice given to allow of applications from
Canton, Shanghai, etc. It is presumed that issue would
applied each year for interest and drawings. combined)
be in Bearer Bonds of $1,000 and higher denominations.
Borrowing by tender instead of making an issue at a
definite price is possibly a new feature in the East but
which provides means of ascertaining best terms actually
while
obtainable on a competitive basis and drawings at par
may prove attractive especially to Chinese.
Regarding
amount/