C.O.
DRAFT AND RECORL COPY.
REGISTERED No.
LETTER SENT
120
Colonial office,
Downing Street,
DATE
1st Maron, 1947.
DRAFT
MR. Balmer
MR.
MR.
54126/4/47
ENCLOSURES
Dear Serpell,
»ith reference to your letter of the 77th February (9.52892/04) regarding the proposed Hong Kong loan, I have discussed the two points with ¿manuol as they are technical points on which I de hot pretend to be an expert. Braquel's comments are as follows.
Apparently it is not the normal practice in in the case of colonial loans which are floated by the Crew Agents
for provision to be made for sinking fund which
qould rudem the loạn within the period of its life. The usual practice is to provide for a 1o sinking
und which may be supplemented later on should the inancial position of the territory improve sufficiently to enable this to be done. zmantel's Improssion was that whilst you did not necessarily
gree with the above procedure in the case of Hong Kong, you were prepared to leave the matter to the decision of the Colonial office.
FURTHER ACTION
As regards paragraph 5 of your letter of the 1st February, the last sentence in (b) of our telegram No.220 suggested that the Crown Agents should be appointed as trustues to the sinking fund and that any investments of the proceeds or the
binking fund in "self stock" could only be done with the Secretary of state's approval. The requirement as to the Secretary of state's approval is contained DEVA in draft Ordinance which we have sent to Hong Kong
in commeation with this loan. In these circumstances,
■
D.R. GENEEL,
To
0.B.E.
[4264A] Wt. 11439/415 50m. 5/45 C.N.Ld. 7
it