CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 320

319

money would be advanced as required, advances being cancelled as loans were repaid, a procedure which is not possible under the proposed arrangement with the Hongkong & Shanghai Banking Corporation. Direct borrowing is therefore slightly more advantageous in this respect, but this advantage is off-set by the higher rate of interest, and the terms are to all intents and purposes practically of equal value.

Applications for advances are being scrutinised by a Committee consisting of the Hon. Treasurer, the Hon Secretary for Chinese Affairs, the Crow Solicitor, Representatives of

the Hongkong & Shanghai Banking Corporation, and

the Chartered Bank of India, Australia & China,

a chartered accountant, the Chairman of the Chinese

General Chamber of Commerce, and one British and

one Chinese merchant. The applications received

to date are largely in respect of operations

which are outside the intended scope of the loan,

and it is not yet possible to arrive at any

accurate estimate of the amount of money which

will eventually be required.

I have the honour to be,

Sir,

Your most obedient humble servant,

7. E. Stutter

7.8.

Governor

&0.