CO129-576-4 Loans for public works 3-7-1939 - 4-1-1940 — Page 27

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535113/3/11

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Telegram from the Governor of Hong Kong to the Secretary

of State for the Colonies.

21

/27

Dated 19th January, 1940. Received 11.45 a.m. 19th January.

No.33 CONFIDENTIAL.

12

Your telegram No.11 Confidentiel.

Am satisfied

of necessity in the present world condition of increasing

liquid reserves. Hong Kong and Shanghai Bank now prepared

to underwrite issue of balance of loans producing

$11,140,000 at 95 on 1 per cent commission. This should prevent speculation and minimise depreciation of existing

Government will take up such portion as it

issue.

desires, on which portion no underwriting commission would

of course be charged. As at present advised propose that

Government should take up about half. As part of the

arrangements with the Bank Government would place money

obtained on year's deposit with the Bank at 3 per cent but

subject to 2 months notice in emergency.

May I have your authority to proceed with the

issue on these terms.