CO129-539-12 Loans for public works- military finances 26-2-1932 - 7-3-1933 — Page 82

CROWN

AGENTS

FOR

THE

ALL COMMUNICATIONS

TO BE ADDRESSED TO THE

CROWN AGENTS FOR THE COLONIES.

THE FOLLOWING REFERENCE AND THE

DATE OF THIS LETTER BEING QUOTED.

A/239.

TELEGRAMS: CROWN, LONDON.

TELEPHONE: 7730 VICTORIA.

COLONIES

RECEIVED 31 MAY 1932

CONFIDENTIAL.

छ

4, MILLBANK,

7

79

WESTMINSTER,

LONDON, S.W.1.

30th May, 1932.

ENCLOSURE.

Sir,

2.

I have the honour to acknowledge the receipt

of your letter No.92639/32 of the 5th May forwarding

a copy of a memorandum dealing with the loan finance of

Hong Kong.

2.

The Ordinance authorising the Public Works

3.238/27 Loan 1927 of $5,000,000 (No.14 of 1927) provided for

Coly Otty

repayment not later than 1938, and the contributions

to the sinking fund appear to have been fixed on the

basis of redemption in that year. The proposal to

convert this loan at the earliest optional date involves

replacing it with a loan of a further 19 years currency;

but as the extended period amounts only to 30 years,

and since the money has been spent on works of a

permanent character, we see no objection to the proposal

on that ground, and we recommend that the Governor

should be authorised to arrange in due course for the

conversion of the loan to one bearing a lower rate of

interest. No period of notice of the intention to

convert the loan is specified in the Ordinance and it

may be considered inadvisable to make a public statement

until it is absolutely necessary in case it should be

found when the time comes for arranging the conversion

/that

The Under Secretary of State,

COLONIAL OFFICE,

r.

S.W.1.

CA.