CO129-546-1 Loans for public works 6-1-1934 - 14-8-1934 — Page 36

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the issue of bonds to the amount of approximately

$5,000,000 for the redemption of the 1927 6% loan which

formed one of the constituent items of the $28,000,000

loan enumerated in paragraph 8 of Colonial Office letter

of the 19th August, 1932.

3.

(5)

92622

32

(24)

namely the

(5) m

92622

The Council observe that one item is included

in the schedule of the Ordinance forwarded with your

letter of 13th September, which was not covered by the

projected loan of about $28,000,000 referred to in the

Colonial Office letter of 19th August, 1932;

provision for the redemption of Hong Kong 32% Inscribed

Stock 1918/43 by new borrowing to the amount of $3,400,000.

So far as the Council have been able to ascertain, the 3%

1918/43 loan represents a consolidation of various issues

made in 1887, 1898 and 1906, the greater part being a loan

of £1,143,000 raised in 1906 for the financing of the

Kowloon Railway.

4.

The net receipts only of this Railway are

assessable to military contribution, and the net earnings

the railway, representing the difference between gross

receipts and working expenses, - not taking into account,

that is, the service of the loan, have been sufficient

to pay only a portion of the annual loan requirements.

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The balance has had to be made up presumably from general

revenue/