7
£
Cia
From the Sinking
Fund
995, 100
From the P. W. Loan
Sinking Fund
(132,000
From Invested
approx.
Surplus Funds
114,000
From new $25,000,000
Loan
244,633
£1,485,733
A.
redemption of the
There can be no objection to the/Sterling
Stock by the use of the proceeds of the
first three funds mentioned, and therefore,
the corresponding reduction in Military
Contribution is unexceptionable. It remains
to consider what the effect will be of
including in the $25,000,000 loan, an item of
$3,400,000 to provide the remainder of the
redlim
necessary sum to reduce the 1918/43 Stock.
Assuming that the Hong Kong Government will
take the most favourable course from their
point of view of redeeming the 1887 and
1893 loans in full, and only a portion of the 1906 Railway loan, the first question is
whether or not the conversion of the 1906
Railway loan has the effect of destroying
the individuality of that loan.
If so
presumably it will no longer be possible
for the Hong Kong Government to include the
cost of the service of the remainder of
that loan ($3,400,000) in the calculation
of the net profits on the working of the
railway, and therefore they will have in
future, to pay Military Contribution on
the net profits of the Railway exclusive
of the cost of service of the loan, on
which basis they would have had to pay
contribution