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I do not follow the reference to the use

"loan funds, if other funds

are not

available in para. G of (1). As far as

I can see

H.K. has no

unutilised loan

funds, but has

The contrary advanced

X

* $10,263,500 oad

31/12/37

x

considerable sums from surplus balances against the raising of the remainder of the 3′%% $25,000,000 Loon of 1934.

If the expenditure

on barracks ekz.

is to be regarded as

a

charge against

arranged on transfer to itern 8 of the Schedule under section 3(2) of Ordice.

The 1934 Loan I suppose this could be

a

11 of 1934

стери

: but this hardly

Seems a

suitable prozedure with regard to expenditure which is expected to be reimbursed in the family near future, since it unn

expenditure

Loan was

an

Special

mecessarily restricts The Tobjeds for which the

raised. Nor does the Gar. seem

to mean this.

пред

suggest we

add a to para.

of the draft now submitted

هه

a caveat

to the method of financing the immediate expenditure,

saying

That

we assume that this will be referred to us in detail at a later stage, +that we

are not clear what loan

funds could be used for the purpose,

or how.

Nis Andrews

20.07:39.

Jayme that

it w be as

well to ack for fuller when

p

in che com~

the Financing

I han add

par 20. the eff

e 10Page 11

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