Heng Đảng Kong
Hansard Repor
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HONG KONG LEGISLATIVE COUNCIL.
thereby saving a higher rate of interest, which would assuredly have been demanded by lenders. Interest rates may fall lower, but they may also rise, and it is the considered opinion of Govern- ment endorsed by our financial advisers at home that advantage should be taken of the present state of the money market.
Honourable members are of course familiar with all the works enumerated in the Schedule to the bill which have been explained when the various resolutions were taken in the past. The figures opposite the items denote the amounts at present estimated to be spent to complete the works.
As, however, expenditure on each item cannot be foreseen provision is made in the bill for the transfer of money from one item in the schedule to another, subject to the approval by resolution of this Council and by the Secretary of State.
There is, however, one new item in the Schedule, No 7 Redemp- tion of Hong Kong 32% Inscribed Stock 1918/43-$3,400,000. The total sterling inscribed stock outstanding amounts to £1,485,733 and it has been decided to repay this on 15th October, 1934, notice to this effect having been given in the London Gazette, dated 13th April, 1934. Although Government are under no obligation to redeem this stock before 1943 the conditions of the London Stock Market are such that it is most desirable to do so. stocks are now at a higher price than they have been for the last Gilt edged 30 years consequently the securities forming the sinking fund of the Sterling Loan will, when realised, produce a larger amount than is required at this date to be set aside.
In other words the sinking fund is more than saturated. It is estimated to yield £998,000. Then there is the Sinking Fund of the old 6% Public Works Loan, 1927, which will yield £147,000 and the invested surplus funds of the Colony amounting to £114,000, a total of £1,259,000, leaving £226,733 to be found from the proceeds of the present loan. Under item No. 7 of the Schedule $3,400,000 is provided for this purpose reckoning exchange at 1s. 4d.
The total advances from surplus balances on account of loan works at the end of this year were estimated when the 1934 Estimates were prepared at $11,168,307. Assuming that the whole of this sum is spent this year, which I do not anticipate, the total money required to liquidate the advance account and to supply the balance of funds for redeeming the Sterling loan amounts to $14,568,307.
ft will be observed that Government is taking power to Lorrow the full $25,000,000, but it is proposed in the first instance to issue bonds to an amount of $14,000,000 only, the remaining $11,000,000 will be issued on one or more occasions on some future dates as required.
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