CO129-554-1 Loans for public works 13-3-1935 - 30-11-1935 — Page 34

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MEMORANDUM.

It was decided in 1934 to take advantage of the

very favourable conditions of the London market and to effect repayment of the Hong Kong 3% Inscribed Stock 1918-1943 amounting to £1,485,732.16s. 5d, of which £1,143,933. 1s. 4d was raised in 1906 for the financing of the Railway.

Repayment was made from

Sinking Fund 3 Sterling Loan

Sinking Fund Public Works Loan 1927

£1,028,845.16.11

149,905.16. 7

Total

£1,178,751.13. 6

The shortage was £306,981. 2.11d. This sum was met

From sale of investments on account of

surplus funds

From Colony's general cash account

Total

£114,122. 7. 1

192,858.15.10

£306,981. 2.11

(27)

Converted at $ - 1s/77/0

S

=

$3,864,943,

which sum was treated as an advance against fresh borrowing and is met by item 7 in the Schedule of the Hong Kong Dollar Loan Ordinance, 1934, the flotation of which was under con- 4 sideration at the time. Only $3,400,000 has, however,

in 33706

been provided and it will be necessary to amend the Schedule under section 3(2) of Ordinance No. 11 of 1934 and substitute the figure $3,864,943 which can be done by adjustment of items 2 and 8.

The service (interest at 3 and sinking fund at 1%) on the Inscribed Stock Issue of 1906 (£1,143,933) amounted annually to £40,038 plus £11,440, a total of £51,478. service for 1935 on item 7 ($3,864,943 as amended) is interest

at 31 $135,273, and of $3,864,943

1233

25

The

-

$154,598, a total

of $289,871, and this becomes progressively less as 1 of the issue is redeemed annually (section 5(2) of Ordinance

25