661/05 Conf.
CONFIDENTIAL
Colonial Secretary Hong Kong to Crown Agents.
Colonial Secretary's Office,
29th June 1906.
Gentlemen,
554
With reference to the second and third paragraphs of your letter 96 A/Hong Kong of the 1st ultimo on the subject of the manner of remitting to you the sums received from the Viceroy at Wuchang on account of interest and repayment of the principal of the Loan of £1,100,000 made to him by this Government, I am directed to state in the first place that His Excellency the Governor does not think it would be right or politic and is not prepared to ask the Viceroy to deviate from the terms of the Loan Agreement which provides for payment to the Treasurer at Hong Kong in sterling sight drafts by making payment direct to you in London.
In the next place, if the Chinese Authorities, who will be communicated with through His Majesty's Consuls, are willing to pay to the Hong Kong & Shanghai Banking Corporation the dollar equivalent of the sums from time to time due, the amount in sterling payable to you by telegraphic transfer would be reduced by 1/16 of a penny on each dollar with the expenditure from the Special Fund of such expenses as might be additionally incurred.
As this loss would be equivalent to about 1/4 % of the dollar at prevailing rates and consequently to about 3% per annum, and as it is not likely that you could invest the sum remitted by telegraphic transfer at a much more advantageous rate of interest than 3% it appears to this Government
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661/05 Conf.
NFIDENTIAL
Colonial Secretary Hong Kong to CrownAgents.
Colonial Secretary's Office,
29th June 1906.
Gentlemen,
554
With reference to the second and third paragraphs
of your letter 96 A/Hong Kong of the I th ultimo on the sub-
ject of the manner of remitting to you the sums received from 1
the Viceroy at Wuchang on account of interest and repayment of
the principal of the Loan of £1,100,000 made to him by this
Government, I am directed to state in the first place that
His Excellency the Governor does not think it would be right
or politic and is not prepared to ask the Viceroy to deviate
from the terms of the Loan Agreement which provides for pay-
ment to the Treasurer at Hong Kong in sterling sight drafts
by making payment direct to you in London.
In the next place, if the Chinese Authorities, who
will be communicated with through His Majesty's Consuls, are
willing to pay to the Hong Kong & Shanghai Banking Corporation
the dollar equivalent of the sums from time to time due, the
amount in sterling payable to you by teleg aphic transfer
would be reduced by 1/16 of a penny on each dollar with the
expenditure from the Special Fund of such expenses as might
be additionally incurred.
As this loss would be equivalent to about 1/4 %
of the dollar at prevailing rates and consequently to about 3% per annum, and as it is not likely that you could invest
the sum remitted by tele graphic transfer at a much more
advantageous rate of interest than 3% it appears to this
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Government
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