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

amount of new loan this should be sufficient to

liquidate present 3 stock and provide funds for

present loan works. Stock outstanding £1,485,732

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against which there is Sinking Fund £995,100 and

assuming that Public Works Loan Sinking Fund £132,000

and invested surplus funds £114,000 were also used

net amount required would be £244,632 which at 1/4d.

equals £3,700,000 approximately. To this must be

$21,000,000

added for present loan works making a total of, say,

Moneys advanced from surplus

$25,000,000.

balances are estimated in 1934 estimates at $11,000,000

by end of 1934 so that minimum sum to be raised in the

first place would be £14,700,000 while maximum to be

specified for tendering is a matter for consideration

and actual amount issued would depend on the results of

tenders received. Loss of interest through having

considerable surplus funds on deposit at rate lower

than 3 might well be counterbalanced by advantage

of securing this rate over a loan period of 20 or 30

years. Ordinance of course would show full amount and

would specify as one of its reasons redemption of

Sterling stock. If so it is desirable to give six

months notice in London not later than 15th January 1934

of redemption of Sterling loan. Point for immediate

consideration is whether a loan of the size indicated

above can be raised in Hong Kong for a period of 20, 25

or 30 years with repayment by annual drawings after first

year on terms not less favourable than those indicated

above. Telegraph your views. Further details

ordinance etc. can be considered after Treasurer's return

to Hong Kong. All consultations should be treated as

strictly confidential in order to avoid publicity as to

redemption of Sterling loan until notice is given by

Crown Agents.