CO129-393 - Governor Sir May - 1912 [11] — Page 270

ONFIDENTIAL.

Sir,

C.0.

257

262

40485

REG?

REC 21 DEC 12

GOVERNMENT HOUSE.

HONGKONG. 21st. November, 1912.

aure /

odu

E 40478.

In continuation of my Despatch marked Confident

-ial of the 9th. instant, I have the honour to inform you that on

the 6th. instant the Registrar-General reported that Sir K'ai Ho

Kai had brought to his office on the 4th. instant Mr. Liu Chung-

-hoi, Provincial Treasurer at Canton, who informed Lir. Hallifax

that in order to deal with the present financial difficulties the

Canton Government proposed to adopt the following measures:-

(a). To issue Lottery Loan Bonds to the value of

$10,000,000 and to utilize the funds thus raised

for the redemption of $10,000,000 of the note issue;

(b). To raise a foreign loan for the establishment of a

Bank whose function would be the redemption of

another $10,000,000 of the note issue.

Mr. Liu was on his way to Peking to discuss the financial situa-

-tion with the Central Government. He clearly intimated that if

the Central Government would not help the Canton Government by

allotting to it funds in its hands or raised by it by loan or would

not permit the Canton Government to raise a Provincial Loan on its

own account, the Provincial Government would take what steps it

pleased to raise a loan.

2.

The immediate object of the visit to Mr.

Hallifax was to ascertain how this Government would view the issue

of the Lottery Loan Bonds (specimen copy attached) in this Colony

from

RIGHT HONOURABLE

LEWIS HARCOURT, M.P..

&c..

&C.,

&C...

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