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this Government.
I believe that part of the Southern Rhodesian Currency Fund is invested in Southern Rhodesian Government securities.
40 If the above proposal were agreed to, I would propose to maintain the present agreed limit of $100,000,000 in the Loan Ordinance and to make an initial issue of $50,000,000. We are committed to a local issue and it is most desirable that there should be one to abɛorb idle funds.
5.
After this initial issue, I would propose to take $(Hong Kong)50,000,000 from the Exchange Fund and to finance whatever rehabilitation expenditure which might be necessary next year from a further local loan issue or from further borrowing from the Exchange Fund, as circumstances might dictate. I would naturally consult you before taking any such action.
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It would he necessary to consult the Exchange Fund Committee in regard to this proposal, but I have every reason to believe that they would welcome it. I would suggest a tern of 25 years and interest at the rate of 24%, which would ensure that the Exchange Fund would benefit under the scheme,
I should be grateful for your comments on the above suggestions as soon as possible, as I am afraid that, unless an initial issue of loan is made at an early date, we may miss the market. The delay is also giving rise to a certain amount of public criticism.
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