بھلی
7
Wt. 29446/552 9/46 50m. S. & S. Ltd.
C. O.
Mr.BossS.
576.
Mr. J.B. Williamgje: Wutted
Mr. Mayle
Mr..
Permt. U.S. of S.
Parly. U.S. of S.
Mr.
FORTANT
DRAFT.
Secretary of State.
Telegram No.
(54)
0.A.G.
Hong Long
FURTHER ACTION.
Your telegram No. 889. Loan.
I have considered your proposal to borrow
(50,000,000 from the Exchange rund to meet
the difference between the originally suggested
loan of $100,000,000 and the higher total of
$150,000,000 proposed in your secret telegram
(46) No. 622. While I do not wisa to rule out the
possibility of employing Currency Funds in some
degree to the more/direct benefit of the colony
I should be reluctant to give my approval to
your proposal particularly in view of the danger
of its aggravating inflationary tendencies.
You will now have received my telegram
(53) No. 831, where in paragraph 4 it was suggested
that when the Bill is introduced an explanation
soula be given that the amount ($100,000,000)
is
estimated to be sufficient to meet immediately
foreseen liabilities but that powers might be
sought later for raising a further amount. I
consider tuis method of increasing the total
amount, provided that public support we forth-
coming, very preferable to regarding at this
stage a loan of $100,000,000 as the upper limit
es
/and