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149 33
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1.
31st December, 1946.
amer, 2016.
Dear Palmer
We have been considering the points raised by
the Governor of Hong Kong in his telegram No. 1357 (28
of 30th October regarding the projected Hong Kong loan, and, on the point of sending you this letter I have now received your letter 801426/4/46 of
(30)
17th December. It may however be helpful for you to hear what the Treasury attitude is so far.
We
The amounts to be raised in London and in Hong Kong and the form the loan should take, present may difficulties, mainly perhaps because of the uncertainty in Hong Kong as to the local response. do not think it would be a good move to promote two ordinances relating to two separate loans as this might well have an adverse effect on the local issue. Is there however any reason why Hong Kong should not promote an ordinance which would give the local government power to raise a loan either locally or in London as circumstances dictate? There would then appear to be no need to mention a rate of interest or other details in the ordinance itself. If this course were followed, and it is one we recommend, the question of deciding on the rate for the London portion of the loan does not immediately arise.
You confirm that the Crown Agents have already told you that it is unlikely that repayment of advances from the Joint Colonial Fund will be called for, for some considerable time, but it seems wise to mention the point in legislation.
H. Palmer, Esq.,
B
Colonial Office.
/I note