OUTWARD TELEGRAM
172
5412/4/46
Cypher (0.T.P.)
No. 1079 Secret.
TO HONG KONG (Sir M. Young)
FROM S. OF S,, COLONIES.
Sent 16th October,1946. 16.30 hrs.
Your telegram No. 990.
Loan.
-18
1. This matter has been discussed with the Treasury and I agree to the raising of a loan of $100,000,000 for rehabilitation and re-equipment, subject to your agreement with the total. You will no doubt arrange for the introduction of the necessary legislation. Power should, of course, be taken to raise the loan both locally and in London. I agree to the terms of the local loan referred to in paragraph 4 of your telegram, and I hope that in spite of the difficulties referred to in paragraphs 2 and 3 of your telegram No. 990 which I fully appreciate some means may be found of inducing Chinese to subscribe.
2. It is suggested that items included under special expenditure, should be reviewed from the point of view whether certain proportion could not reasonably be charged to revenue rather than to loan funds on the grounds that the replacements for which provision is made include an element of renewal which would have been required in any case had the territory never been occupied
Copies sent to:-
Crown Agents Treasury
by
Mr. J. Goldburg. 0.B.E. Mr. D. R. Serpell.0. B. E. Miss M.E. Ashe.