4-

39

securities.

8. Finally, I may later wish to submit to you

proposals for borrowing for an extensive re-housing and

slum clearance scheme and if a loan for that purpose were desired it would, of course, be necessary first to clear

up the position of the 1934 loan. The re-housing proposals are, however, at present only in the stage of investigation and I do not expect to be in a position to submit any definite scheme to you for some considerable time. With your agreement therefore, and subject to any

comments you may make on the possibility of a rise in the rate of interest, I think that the whole question of fresh borrowing may be deferred until the outlook as regards the re-housing scheme as well as the whole future outlook of the Colony in relation to the present Sino-Japanese dispute is clearer.

I have the honour to be,

Sir,

Your most obedient, humble servant,

as. hother

Governor.

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