CO129-576-4 Loans for public works 3-7-1939 - 4-1-1940 — Page 16

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I doubt

it

it would be advisable lo

The 'C. As' crews to the Treasury. Communicate the 'C.As' vows

Nis Andrews

4. xü.39

I have included a note of this loan in the

list for

Amarons discussion with the

And we can

Sevaray

mly Awall the result of that discussion

Ak's requirements however do not seem may high ups on the list of Colonial requirements.

Hi Boys

އ

14/111

The whole thing turns on the possibility of

obtaining sanction to the issue of a loan in

› C.J. Roun: the UK. That must await the Treasury decision.

2. As to para: 4 of the C Ags: letter, I think

we do not know enough of the H K position to

warrant the expression of any opinion. We here

have, for a long time now, wondered how they

managed to carry on; we drew attention to this

aspect of the matter; but H K seemea quite satis-

fied. They may have reasons, which we do not know,

for desiring to issue the loan this year.

But--if it comes to action in that direction--

there is of course no objection to communicating

the C Ags: views to H K.

Para: . This suggestion rather surprises me.

H K wants more liquidity; this proposal would

not give that, unless H K could sell enough of its

bonds to secure the degree of liquidity it

required. The price at which it could do so

is uncertain; it might even be lower than

93. The cable from the Govr: does not seem to

suggest a higher price, anyhow. But there is

undoubtedly the possibility which the C Ags: