pares to of
No 54
M2 Doom Jeannot prefy this. It is un Orde
€ 10.544
•
not
behand No. 57, but CM Balti
me that
auth is
the case
Draft to secking in brefchste
43
137
40]
3.
how to st
(a) or (b) became fully subscribed.
You
would
be able for
doubtlessydecide upon the manner
in which the $150,000,000 ould be divided
amongst (a), (b) and (c)in the light of local
conditions.
4.
As regards the proposal i
£3 mil hous to borrow from the Exchange Fund up to $50 millions
for 25 years at 2%, I would prefer a straight
investment by the Fund in the proposed loan referred
at the cursed forms
to at (a) above, or in any further issue, in the
it is
unders (vod Chai same terms might be decided upon. As the profits on
rerne to the benefit of
x
the Fund Mit the Colony, it is not
apparent what advantage there would be in paying a
reduced rate of interest compared with th t paid on the
loan issued to the public I sho ld not object in
the wron were not otherumi felly subsented principle to such an investment/provided the amount so
invested did not reduce the readily convertible
assets of the Fund below the safety level. I should
therefore be glad to receive details of the latest
together with an assessment of the note issuing Banks positive in figures of the Fund's assets and liabilities/in order
this maller that I may consider further, but this need not
delay the enactment of the Ordinanc
No 152
5. ès regaris paragraph 5 of your telegram/ enclosure (b) of my savingram No. 115 provided for the annual
sinking fund contribution to be remitted to the Crown
Agents for investments to be ap roved by me; and (c)
of my telegram No. 220 envisaged use of the Fund to
purchase loan if price of 1 an fell below par, Crown
Agents point out that in fact conditions may be such
1
that even above par the loan may be the best
investment of the sinking fund; but it would be
inadvisable to include provision for making the
purchase obligatory if loan fell below par as this
might lead to manipulation of market against the
Government.
There would be no objection to provision being
this respect
[Most
made