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

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7 $660,000 meisterd of constructing new press

at a cost

clear that they must have the money to finish

them.

unfortunate

As regards the vehicular ferry, it seems

that they receivedsanction to

commence it as a loan work in July, 1931.

6 on 72849

49). If it had

been held up for

consideration now in connection with their

general financial position, I should certainly

have advised in favour of the repairs to the

existing piers at a cost of $1,300,000.

paragraph.17 on (1) of 72849).

(See

Under the larger

scheme now embarked upon there is a further

contingent liability of $750,000 for new

ferry boats if private companies do not provide them. And if Goverment is driven to providing:

new ferry boats, it means running them as a

Government venture in competition with the

private ferries & possibly losing money in the

process.

Assuming the cutting out of the gaol and the postponementoftheir Water Works programme

for at least a year while they put the present

system on a paying basistheir loan requirements.

will be as follows:

1931.

$2,830,000

1932.

$1,670,000

1933.

$3,000,000.

1934.

$3,000,000.

1935.

$3,000,000.

1936.

$2,000,000.

1937.

$1,650,000.

The next question is whether the loan should

be on a sterling or dollar basis. The Governor

the

prefers a sterling basis because sinking fund

has to be invested in sterling securities but

a

Pag

9

a dollar loan seems much safer.

Their

existing loans consist of a sterling loan

for

dolla

1,485,733 and the Public Works loan

of $5,000,000.

With the fall in dollar

from 2/-to 1/-, the burden of the sterling loan for interest and sinking fund has exactly doubled, while the burden of the

dollar loan, although unaltered in dollars,

must be appreciably lightened. If the

dollar is likely to appreciated loan

raised in dollars worth 1/- might have to be

t

repaid in /- worth 2/-. It would seem mort

mete desirable to avoiu

decision

on this question until the Currency Commission

has returned and given us their views as to

the future of the dollar.

? Send despatch to the Govr. on the

above lines asking for the maximum amount

which is really necessary to raise this year

and say the method of raising it will be

further considered when the Currency Commissi on

has arrived.

Mr. Pady

J. A... Calder

12.5.31

()s. Where the properabat

tha ka

Yers_anad dvorce that ich

additiones taxation con to

bored as

slims co

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fity it was not

import cality as to belove

the Jais. Jagua

the Budget-

is reques

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permally. but it will be over

form 72932 that its condition has poin use botarly postin

Picalov 82753

Walle Of Ellin

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12/1-

I agree.

We ought to go slowly

& cantiously in Hongkong in views.

of all the political uncutanty in

Clima.

Bec of State

Ge

(2.6731

Mr. Calor

You should vel. Jappe.

8.16

14.5.31.

as proposed

1575

I submit opr. - hus I hado prind

out this the for has cakes for

reply

by tilgram and you may wish to consider brick kelynm should not to sund

whith a

2. Tel Hong Kong No 62 to May 31

DESTROYED UNDER STATUTE

TUTE

(not any)

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