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IMMEDIATE
Kan
inspeential
10815
Tel. (cose)
Galin
boded & sent 194.
19156 2.9.46
Please pass to Evans Thomas from Treasury.
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Hong Kong Government exploring possibilities of local borrowing to finance special expenditure on rehabilitation and reconstruction. Total Hong Kong dollars 77 million needed in current financial year and unknown amount in 1947/48. To meet this Governor expects 25 million might be raised locally, but mainly from banks and insurance companies.
reciVED 3SEP 946
COR. OFFICE
Cover to
Min Arbe
(Tremy)
2.
H.M.G. hope this figure may be increased and we hope if you are shortly to visit Hong Kong for reasons mentioned in telegram No.44 from Nanking to Hong Kong you might discuss with Governor:-
(i) possibility of attracting holders of Hong Kong notes in South China to substitute for them the new Hong Kong Government loan.
(ii) possibility of putting some pressure to induce wealthy Chinese in Hong Kong referred to in recent Times leading article (13.8.46) to invest in the loan if as seems probable it would be difficult to get at them adequately by taxation. One argument that might prove effective would be to convey to them that H.K. Government felt strongly that if to quote Times they are to "swarm in to seek the comparative security of the British flag" they should subscribe handsomely to a loan for the rehabilitation of the Colony.
Colonial Office have been consulted and are communicating with Governor of Hong Kong.lud,
3.