40
Vt. 29446/552 9/46 50m. S. & S. Ltd.
C. O.
27/1 May? Mi a
Mr....Ema: iel
Palmer 4/2 Mr. Mayle. 4/
Mr.
DRAFT.CYPHER O.T.P.
TELEGRAM
GOVERNOR,
RECEIVED
28
54126/46€
DRAFT FOR TREASURY AND CROWN AGENTS
Permt. U.S. of S.
Parly. U.S. of S.
Secrary of State.
No 2.Secret.
CONCURRENCE.
see
BI
4/2
Recyphered & sant (PTP)
2215
4:2:47 At
Your belegram No. 1354. ft.
My telegram 1450 and your telegram 1619.
Loan.
Very much regret delay in replying.
Following are my views on principal points in
telegram, 1357..
HONG KONG
28) - 5 FEB 1947
C. O. RECY
(C) Redemption:
FURTHER ACTION.
Copies sent to Serpell, isa + Hicks, Crown Agents, water cover of letter 29/1.
вору 15
D.R. Serpell (Freas
A.B. Pricks (6 agents)
し
Адерево)
Resins quickly
Wise himate
(a) Separate ordinances for local and
London loan are not necessary and there
is no need to mention the interest rate
in the ordinance. Draft of appropriate
ordinance follows by air mail. (b) Terms of first local issue should of
suggest
edurée be 20 25 years, as originally
proposed, with sinking fund, unless you
consider prospects more favourable if
issued for fixed period of 25 years.
Advantage of sinking fund is that it
allows flexibility in arrangements for repayment of loan. For example
statutory fund might be restricted to 1% per annum, leaving question of
supplementary fund to be considered in
three
say five years' time when financial
position of Government may have
improved. Terms of any later local
issues, as of any London issue, could
of course be varied to suit circumstances
в at time. Crown Agents will presumably be appointed trustees of Sinking Fund and would invest in suite blo
INVEST
(d) As
could
and with tipproval invest part in purchase of loan in price of
latter droppist wasting
"DUNDULY