119
Erech
particularly with reference to the suggestions for raising additionel revenus put forward in paragraph 2 of my telegram No. 500. The raising of such revenue is, of courge alec most important from the point of view of the Colony's prospects of raising a loan. If it were possible to say with reasonable certainty that there would be a balenced budget in 1947/48 that would probably improve the prospete..
As to the second point, I note from paragraph 13 of your daspatch No. 48 that you are advised that it would not be no.wible to float a local loan at a rate of interest lower than 34% and that it seems improbable that more than $25,000,000 would be subscribed. Should be glad to learn
what would be the other terms of such a loan, namely price of lasus and period. In any case I should be glad to Lave your acceptance of the principle proposed in (2) of paragraph: 2 of this telegram, It is considered here that 34% Re a long term local loan of asy 20 - 25 yesre would' not be unduly high in present circumstances of Hong Kong.
Grateful for your reply to this telegram as soCA as presibis, Neentime further consideration is being given hero to the items of special expenditure included in the estinatan amourbing to some $77,000,000 which, if approved, will fall to be financed under the arrangements discussed abcre. You e111 no doubt be considering what other projects, 11 9. should be provided for alld gibmit delalle.