CO129-435 - Governor Sir May & Acting Governor Claud Severn - 1916 [9-11] — Page 204

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athen wat &B.MT.

AKT. (JR)

22/9/1

G G

22.8.6.

206

452 21. Sept

The Governor of Hong Kong to the Secretary of State for the Colonies.

(Received Colonial Office, 11.30 a.m. 21st September,

1916).

Gov/43331

With reference to your telegram of the 12th September I am advised that a large withdrawal of

capital from Hongkong has recently been caused by high rate of exchange and that there is not at present money available for a large local loan; and also that the rate of interest cannot safely be less than 6%.

I may point out that Straits Settlements 5% bonds are

sterling bonds. Unofficial members of the Councils unanimously advise that a loan of $3,000,000 repayable

in five to twelve years at the option of the Governmer be immediately issued. I would ask permission to instruct Hongkong and Shanghai Bank to make necess arrangements without delay. Unofficial members f.

unanimously recommend that a supplementary loan at € in no event exceeding $2,000,000, be raised as an additional gift to the Imperial Government, if sub- scriptions warrant it, I propose, if this is done, impose an additional two cents per ton in light due specially earmarked to cover the interest and sinki. fund on this addition, This principle has already consented to by the principal shipping firms.

MAY.