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COPY FOR REGISTRATION

21 MAY 1938

C. O. REGY

Telegram from the Governor of Hong Kong to the

Secretary of State for the Colonies,

Dated 21st May, 1938. Received 8.2.a.m. 21st lay.

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No. 132,

Managing Director of Canton Kowloon Railway has requested loan from British section funds of 100,000 dollars repayable in 5 monthly instalments as assistance Average monthly in meeting obligations to bondholders.

payment by the British section of funds collected here on behalf of Chinese section is about 100,000 dollars. Financial Secretary is opposed as this may lead to

that bank might larger request in future and suggests ?

Bend amount on security of Chinese Post Office earnings

collected by British section. I do not disagree but

to prefer/mention to you this opportunity of showing goodwill towards Chinese Government before giving ruling.

I

should be grateful for early intimation of your wishes.

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