CO129-576-4 Loans for public works 3-7-1939 - 4-1-1940 — Page 15

15

& 6. Agents - 1/138-Amp. двадеть

Ref 2.

- Conf.

1-12-39

Sabarité absana

The main points in this bitter are:-

(i) If the Capital Issues Chee agreed,

I

, an issue of it is probable that ! $750,000 could be made in London less arduous terms

Ihan those quoted by the It,k. 5 Shihai Bank, but the Ordice, would have to be

amended,

the redemption period w'al. have to be considerable less than 25

years.

(ii) B Direct raising of the money through The Z. As' intercolonial scheme is impracticable. (i) The necessity for raising the loan betare the end of the year is not apparent, I the advantages of waiting until Lato Seem overwhelming.

(iv)

The Itk. Gait. could take up a

local issue itself, only market it later, actually required or when it suited them better than now.

when the cash

was

(v)

The necessity for using the whole of the available borrowing powers is not appivent. Part of the advances against them might well be written off against

revenue.

All this seems valuable sound, Thoman I do not agree with the Cast post of (v), since it ## may well be to H.K's advantage not to diminish her existing borrowing powers, such as they are. (iv)

seeme

attractive idea

? We should wait a bit longes for The Treasury's views, in case the possibil-

U.k. loan should develops. ity of sharing in a

? Wait 5 days.