CO129-566-3 Canton-Kowloon Railway 4-4-1938 - 20-1-1939 — Page 6

انس

resumed by

6

frasim of

the lean

the

Chase fiction of the

Canton

Kowloon R4

R4 cm

be much to

The Tovernor.

Mant

2515

I know nothing of the background here, or of the

facts.

In the circumstances stated, I would incline, if need

be, to grant the loan, assuming that such sanction

in fact

as is apparently required can be obtained.

A

But I agree that the main factor here is the political

aspect of the matter; and would consult the FU

and the Treasury, as proposed.

A refusal to lend would, in the circumstances,

doubtless be misunderstood and resented; and

the fear of further and larger requests shoula

be considered in the light of te fact that the

proposed loan would in effect be an advance of

revenues which the British section would be in a

in Love moulds position to recover, auto...tically, so long as the

loan is within the limits now proposed. A ioàn,

outside these limits, would be & different matter.

Une appreciates that a loan such as this may easily

for the starting point of an und sirable financial

entanglement; but I would be guided, in this

particulr instance, by the F O and treasury advice.

The 14th: may

>

1J38.

24/1/12