CO129-481 - Governor Sir Stubbs - 1923 [8-12] — Page 191

MINUTES.

MINUTES NOT TO BE WRITTEN

ON THIS SIDE.

PARAPHRASE

186

TELEGRAM

From the Governor of Hong Kong to the Secretary of

State for the Colonies.

Dated 18th August

(Received Colonial Office 10.28 a.m. 18th August, 1923)

4/139133

'39133

New Graving dock. Your telegram of 16th August

shall be glad if fuller details could be sent to me by mail- Seven per cent is Bank's usual lending rate on first class security. If we deposit five million dollars at four per cent presumably the terms to be arranged between the Bank and the Company will involve their sharing between them to difference between the I two rates 1.e. Goverment will be subsidizing these two Corporations to the extent of 150,000 dollars per annum,

We shall need all our balances to finance our salves, in view of the big schemes which we have in hand, and we This would shall almost certainly have to raise a loan. mean that we should only be getting four per cent for our money wnica would be locked up for perhaps fifteen years

Four per while we should be paying perhaps six per cent. cent means only three and one fifth per cent after deducting military contribution and we therefore stand to lose any-- thing up to 1,350,000 dollars.

I do not see the necessity for the intervention of the Bank; I should prefer to consider lending the Company the

While I fully agree money direct on satisfactory terms.

as to the importance of the proposal it requires very Careful consideration and it will be better I think to await

return of person named to the Colony.

STUBBS,