CO129-336 - Governor Nathan & Public Offices - 1906 [11-12] — Page 512

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in any oir oumstances to be completed. It appeared to us therofore that by issuing the new Lean as an addition to the existing line of Stock and by subsequently making use of the power of paying off the Loan to which I have referred the risks of the Colony and the period within which its debt would be unnecessarily inflated could be brought within comparatively narrow limits and that this

could be effected by the further arrangement which I now

proceed to explain.

6. We propose that the whole of the monies received

from the Chinese Viceroy on account of his debt to the

Colony, whether in respect of interest or repayment of

ospital, shall be remitted to us from the Colony and be

paid into a special find to be under our control, and

that this fund shall be administered in the following

mann er

(1) The payment of the interest required for the

Stuck raised to provide the £1,100,000 to be the first charge on the fund

(2) The monies required for building the Colonial

section of the Kowloon Canton Railway estimated to cust $500,000 to be provided out of the fund, the Colony paying into the fund interest, at the rate of its public debt on the amount of all advances so mude

(3). All further muni es remaining in the fund

including the interest, earned un losing out monies in the fund to be considered as being. earmarked towards paying off the debt creatod to provide the £1,100,000.

7. If this proposal is carried into effect we esti-

mate that there should be in the fund in April 1918 a sum

of about £700,000 which could be applied towards liquidating

the Stock oreated to provide the £1,100,000 and this mum

together with the further sum of about £100,000 which will

hare