CO129-534-6 Loans for public works 24-2-1931 - 11-8-1932 — Page 41

62818

9

41

91968/32. General. Secret.

TELEGRAM from the Secretary of State for the Colonies to the

Governors of the Straits Settlements and Hong Kong.

CONFIDENTIAL.

No.8 No.10.

(Sent 2.15 p.m., 16th January, 1932.)

Circular.

Begins.

I do not feel sure that Colonial Governments fully appreciate serious difficulty of raising fresh capital in this country under present conditions. For various reasons, (including international financial situation) very great difficulty will be sxperienced in floating any new public issues in London during March quarter, and opportunities for issue of new Colonial loans will be very limited during that period and possibly for some time longer. This means that in the meanwhile moneys advanced from Joint Colonial Fund cannot be repaid and Fund will not be in a position to make further advances except on strictly limited scale. Securities could only be sold at present at considerable los8.

In these conditions any expenditure from loan can only be justified by absolute ne 98sity and complete impossibility of postponement. I ask you to review any programme of expenditure involving advances from this standpoint.

Ends.