*
Wt. 49614.485 3'46 50m. S. & S. Ltd.
54126/4/46
201 #
C. O. *
Mr. Mayle
Mr.
Mr.
Mr.
30/8/46 Emanned 30/P
Permt. U.S. of S.
Parly. U.S. of S.
Secretary of State,
No.
DRAFT.
CODE TELEGRAM
GOVERNOR,
HONG KONG.
FURTHER ACTION.
My telegram No.600 paragraph 4.
Crown Agents for the Colonies are
prepared to advance special expenditure
temporarily by advances from Joint Colonial
Fund at bank rate varying on security of
appropriate loan ordinance. They would also
require assurance that in the event of the
advance from Joint Colonial Fund having to
be repaid and prospects of market loan being
unfavourable, Treasury will undertake to
provide necessary funds.
2.
This of course involves assistance
from U.K. funds and Treasury will not feel
able to agree to any assurance on above
lines unless they are satisfied (1) that
every effort is being made to raise maximum
additional revenue whether from new taxation
or by increase of existing taxes; (2) that
before recourse is had to London, possibilities,
of a local loan should be exhausted on
basis mentioned in paragraph 4 of my telegram
No.600, namely that the terms should not be
appreciably less favourable than those
obtainable in London,
3.
I should accordingly be glad of any
information and assurances you can give me
on the first point, particularly with
reference to the suggestions for raising
additional