CO129-543-12 Loans for public work 29-3-1933 - 20-12-1933 — Page 26

Draft

CONFIDENTIAL

The Governor,

Hong Kong.

TELEGRAM

14

24

95/ Cassuming

same sum

Confidential.

Treasurer

Proposals for raising new loan and for

repaying 31% Stock 1918/43 have been under discussion

by Crown Agents and Treasurer. Loan issued here now

would be 32% at just under par and present time may

be regarded as favourable for raising loans.

thinks equally good terms can be obtained in Hong Kong

and recommends local issue through the medium of the

Hong Kong Bank. Crown Agents think that this might

be done by inviting tenders for a 3% issue redeemable

by annual drawings at par. With a currency of 20 years 3% at % is equivalent to 3% at par and with a currency

likepoise of 30 years 3% at 94 is,

is equivalent. Tenders for small

amounts would be considered and general public invited

to apply direct or through their Bankers. Co-operation

of chief Banks might be arranged so as to assist in

giving publicity. Small investors should be encouraged

and reasonable notice given to allow of applications from

Canton, Shanghai, etc. It is presumed that issue would

applied each year for interest and drawings. combined)

be in Bearer Bonds of $1,000 and higher denominations.

Borrowing by tender instead of making an issue at a

definite price is possibly a new feature in the East but

which provides means of ascertaining best terms actually

while

obtainable on a competitive basis and drawings at par

may prove attractive especially to Chinese.

Regarding

amount/