182 LO
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Mr. Palmer
Could we have a word about this? I think that we ought to now crystalize the loan position and get Treasury to agree
(1) to the introduction of legislation authorising the raising of a loan of $100,000,000, subject to the Governor's agreement with the latter figure:
(2) to give the assurance which the Crown Agents want for the purpose of making advances from the Joint Colonial Fund:
(3) to the Governor being authorised to take steps for the raising of a local loan in accordance with paragraph 4 of No.18:
(4) to the Governor being asked to let us know when he will require any advances from the Joint Colonial Fund.
I think perhaps that the most convenient course would be to send a draft telegram to the Governor of Hong Kong to the Treasury and Crown Agents for
concurrence.
As regards the question raised in paragraph 3 of your draft to the Treasury, we shall certainly have to give some sort of approval of the programme of special items, and I think that we should still consider whether say a proportion of the total expenditure should not be charged to revenue on the grounds that the
replacements for which the programme provides/fer an element of renewal for which provision would have been made in
the