33
MEMORANDUM.
It was decided in 1934 to take advantage of the
very favourable conditions of the London market and to effect repayment of the Hong Kong 3% Inscribed Stock 1918-1943 amounting to £1,485,732.16s. 5d, of which £1,143,933. 1s. 4d was raised in 1906 for the financing of the Railway.
Repayment was made from
Sinking Fund 3 Sterling Loan
Sinking Fund Public Works Loan 1927
£1,028,845.16.11
149,905.16. 7
Total
£1,178,751.13. 6
The shortage was £306,981. 2.11d. This sum was met
From sale of investments on account of
surplus funds
From Colony's general cash account
Total
£114,122. 7. 1
192,858.15.10
£306,981. 2.11
(27)
Converted at $ - 1s/77/0
S
=
$3,864,943,
which sum was treated as an advance against fresh borrowing and is met by item 7 in the Schedule of the Hong Kong Dollar Loan Ordinance, 1934, the flotation of which was under con- 4 sideration at the time. Only $3,400,000 has, however,
in 33706
been provided and it will be necessary to amend the Schedule under section 3(2) of Ordinance No. 11 of 1934 and substitute the figure $3,864,943 which can be done by adjustment of items 2 and 8.
The service (interest at 3 and sinking fund at 1%) on the Inscribed Stock Issue of 1906 (£1,143,933) amounted annually to £40,038 plus £11,440, a total of £51,478. service for 1935 on item 7 ($3,864,943 as amended) is interest
at 31 $135,273, and of $3,864,943
1233
25
The
-
$154,598, a total
of $289,871, and this becomes progressively less as 1 of the issue is redeemed annually (section 5(2) of Ordinance
25