ALL COMMUNICATIONS
TO BE ADDRESSED TO THE
CROWN AGENTS FOR THE COLONIES,
THE FOLLOWING REFERENCE AND THE
DATE OF THIS LETTER BEING QUOTED,
A/1138.
TELEGRAMS; "CROWN LONDON''.
TELEPHONE: VICTORIA 7730.
CROWN
AGENTS
FOR
THE
COLONIES
4, MILLBANK,
LONDON, S.W.1,
587
[n=2]
Sir,
I have the honour
12th January, 1934.
134
REGYfar to your letter of the
11th January, No. 33706/34, asking for our observations on
the proposal of the Governor of Hong Kong that the question
of raising a dollar loan locally should await further
consideration after the return of the Treasurer who is now
on leave.
2.
We agree that in the circumstances it is advisable to
defer consideration of the issue of a notification of
redemption of the existing sterling stock.
3. We note that the proposal in the Governor's telegram
is to issue a local loan bearing interest at 4 per cent.
If that should be done, we presume that no part of the
proceeds of the local loan will be used for the redemption of
the sterling loan. The latter is a 31% stock and need not be
redeemed before 1943. It would, therefore, it seems to us,
be difficult to justify borrowing at 4% in order to redeem it
earlier. Even if there are exceptional circumstances which
might justify such a course, the reasons could not easily be
explained in such a way as to avoid public criticism. in the
Colony.
I have the honour to be,
Sir,
Your obedient Servant,
Strachus
The Under Secretary of State,
COLONIAL OFFICE.
CA