CO129-576-4 Loans for public works 3-7-1939 - 4-1-1940 — Page 45

45

maintenance, and if possible the expansion, of social and

developmental services in the Colonies during the war, and

while it is clear that the existing Colonial loan programme

must be carefully reviewed in the light of the new eircum-

stances, it is equally clear, I think, that money must be

found from some source to take the place, in part, of the

loans which the Go “msenta concerned would normally have

they raised, in whichever of the categories named above/maybe

included.

In some cases, where the amounts required are

relatively sell, it may be possible for Colonial Governments

to moet their needs by raising local loans, but this would

not always be practicable. You will no doubt sccept the

view, however, that when a Colonial Government has to raise

a loan the money should be put up locally, if possible,

rather than made available from this country.

nother means by which loan money could be

provided for the Colonies would be through the Inter-Colonial

Loan Schmune. The Grown Agents have recently furnished us

with a comprehensive review of the funds which they hold on

behalf of Colonial Dovernments. This review indicates that

the sum of approximately £1,600,000 sccrues anmuslly in

respect of statutory payments to the sinking funds which the

Crown Agents hold for various Colonial loans, while a

further sum scerues in respect of the interest on the

Sinking Punds themselves. These amounts eucse available

for investment by the Crown Agents in frequent and compara-

tively szamll instalments throughout the year; and, in esah

case, the investment must be suitable, na regards date of

redemption and effective yield, for the particular Binking

Fund for which it is required.

Thus the possibility of

using this money for loans under the Inter-Colonial (cheme

is considerably restricted.

It