45
maintenance, and if possible the expansion, of social and
developmental services in the Colonies during the war, and
while it is clear that the existing Colonial loan programme
must be carefully reviewed in the light of the new eircum-
stances, it is equally clear, I think, that money must be
found from some source to take the place, in part, of the
loans which the Go “msenta concerned would normally have
they raised, in whichever of the categories named above/maybe
included.
In some cases, where the amounts required are
relatively sell, it may be possible for Colonial Governments
to moet their needs by raising local loans, but this would
not always be practicable. You will no doubt sccept the
view, however, that when a Colonial Government has to raise
a loan the money should be put up locally, if possible,
rather than made available from this country.
nother means by which loan money could be
provided for the Colonies would be through the Inter-Colonial
Loan Schmune. The Grown Agents have recently furnished us
with a comprehensive review of the funds which they hold on
behalf of Colonial Dovernments. This review indicates that
the sum of approximately £1,600,000 sccrues anmuslly in
respect of statutory payments to the sinking funds which the
Crown Agents hold for various Colonial loans, while a
further sum scerues in respect of the interest on the
Sinking Punds themselves. These amounts eucse available
for investment by the Crown Agents in frequent and compara-
tively szamll instalments throughout the year; and, in esah
case, the investment must be suitable, na regards date of
redemption and effective yield, for the particular Binking
Fund for which it is required.
Thus the possibility of
using this money for loans under the Inter-Colonial (cheme
is considerably restricted.
It