CO129-481 - Governor Sir Stubbs - 1923 [8-12] — Page 450

MINUTES.

:

not doubt be anka

This late ris Bauke

HIC

23/

MINUTES NOT TO BE WRITTEN

ON THIS SIDE.

N°

No 366.

0.0.

1949

14 JAN 24

443

GOVERNMENT HOUSE,

HONGKONG. 10th December, 1923.

Mr.Coins.

I agree generally, but

suggest you should require report

to show not only amount deposited

with each Bank but also rates of

interest obtained for different

periods of fixed deposit.

I do not feel sure that the

rate of interest obtained locally

will be to 1% more than we can

obtain here, especially if the

amounts deposited locally become

larger

"

as probabl

probe.big

large

quantities of money could not be advantageously employed in Hong

Kong.

Referring to remark in last

paragraph of despatch, when we deposit money with overseas banks

we now invariably obtain full

cover in the form of gilt edge

securities.

Tell him this

灭

At once

AEP

6

For 16012/2

My Lord Duke,

With reference to Lord Milner's despatch

No.66 of the 15th of March, 1921, I have the honour to ask Your Grace's permission to retain some part of the balances of this Colony on fixed deposit in local banks, in addition

to the balance, not exceeding $2,000,000, which we are already authorized to hold on current account.

2.

The Colony is committed to a very heavy

programme of works of development and in the course of the

next few years very large sums will have to be expended on

Harbour improvements, a new Prison, a new Queen's College and many other large undertakings, apart from the

reprovisioning of Military buildings which will be necessary

if the negotiations for resumption of Military Lands in

Victoria are satisfactorily concluded in which case sums

of millions of dollars are involved,

3.

-

In these circumstances, there can be no doubt

that the revenues as they come in will not suffice for the

expenditure and it will be necessary to draw on our

accumulated balances.

It will therefore be wiser to refrain from

investing further large suma in securities which will have

to be realised with a considerable risk of loss and to place

THE RIGHT HONOURABLE

THE DUKE OF DEVONSHIRE, K.G.,

80..

&c.

the

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