CO129-546-1 Loans for public works 6-1-1934 - 14-8-1934 — Page 54

$63

while a further sum of approximately,400,000 will be

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required in October for the redemption of the Inscribed Stock.

sum of some $14,000,000 will thus be required by the end of 1934 to liquidate the position, and the balance of $11,000,000 will be needed in the following three or four years to pay for the completion of the Schemes in progress.

Since it is obviously impossible to foresee the exact expenditure that will be incurred on each item, provision is made in section 3(2) of the Ordinance for the transfer of money from one item in the Schedule to another, subject to a pproval by a resolution of the Legislative Council and by the Secretary of State.

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3. It is not intended to raise the whole sum of $25,000,000

for thwith, and power is therefore taken by section 2 and section 5(1) to make separate issues of bonds from time to time. The

first issue is to one of bonds to the face value of $5,000,000.

4. Sections 4, 6, 7, 10, 11, 12 and 13 are reproduced mutatis mutand is from the corresponding provisions of the Public Works Loan Ordinance, 1927, (now repealed).

5. Sections 5 and 8 provide for the redemption of bonds by annual drawings and appropriations. No sinking fund is to be

established, but each separate issue of bonds is to be redeemed

out of revenue at the annual rate of one twenty-fifth of the

face value of such issue. Sub-section (9) of section 5 further

empowers the Governor from time to time, when he deems fit, to

authorise redemption of bonds by purchase in the open market.

Under section 9 interest on the loan is to be 31⁄2 per cent,

section 12 makes this loan a trustee investment and section 13

exempts all appropriations for the service of the loan from

liability to military contribution.

6.

7. The redemption of the bonds drawn year by year and the

half-yearly payment of interest to bond-holders are to be effect- ed either by the head office of the Hongkong and Shanghai Banking Corporation or by the Hong Kong office of the Chartered Bank of

India, Australia and China.

8. In my opinion this is an Ordinance to which His Excellency the Governor may properly assent in the name of His Majesty and

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