CO129-543-12 Loans for public work 29-3-1933 - 20-12-1933 — Page 15

I see no reason why the action proposed by Mr:

Gent should not be taken. I suppose there are advantages in paying off the 1918/43 31% sterling

loan--for the same reasons as in numerous recent

cases we have seen, and possibly with additional

reasons connected with exchange. But it would

I think be well to have the calculations on

record here. The system proposed is novel:

and, at a guess, likely to appeal to the alleged)

gambling instinct of the Chinaman. I can hazard

no opinion as to how a loan on these terms is

likely to be received: we must depend on the

Govr:,and the H K Bank, for advice as to that.

As to borrowing now for the full sum

likely to be required for works foreseen, I

think the probable balance of advantage lies in

favour of that course. There is a slight, but

quite unmistakeable, world-wide improvement in

affairs; and if that movement develops, it will

certainly lead eventually to dearer borrowing.

The 14-12-33.

14/12/85

his draft telegram has been re- pared in consultation with ir zecniel;

but it would seem desirable to obtain

the official concurrence of the C...

in its terms before sending it.

# Rlowell

14.

yes i

Atain official

Concussedce

of

C. A.

VS. 15/144/33

at me

14