CO129-576-4 Loans for public works 3-7-1939 - 4-1-1940 — Page 8

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

8

5.

The

qeneral question of finansing Colonial requirements during the war has recently formed the subgist of

from Sol Packin the faces. (With Barlow). Reference

letter

was

made therein to the point of at to raising funds in the Colonies themselves. It will be some time before the Fress

as

any

indication

can five

of the Vieiro. We have suggested assistance

from the Exchequer c.g. from the proveeds of any tbl. loan, thelf finance Colonies' requirements generally apart from puemely war in cases where but for the was lowes would have on the fondor Warket. Thes case illustrat's the danger

purposes especially

been raised

of Colonies having to pay a much

perbably

delay

be obtained in the af.

W

higher rate of witiest their coved

Jagued with to her yesterday in mus of the probate

which will ocaus toll them have this teclass of any in which Colonies contemplate local borrowing & this to, I think, a case which shored so to meas. Hongthing has I think raind

to

1

it's requeremiats under this specific ordinance in Att. so far but I do not think that this fuel stoned preclude the action

obvroudly With. is somewhat shocked at tho bate fireford

can be made available in Londone.

as

Puggested Lasks whecks funds

( While the sato proposed way reflect commetty the fireseal market cadition's

these are enther artificial & I do not think the St. & S. Bank Ohould have all the good thing').

Copy of corres.

shoned footAgnet's who are aware of the frontion regarding the Sineral financial, proposals

Ser Henry hoore should are.

Hot Boyse

까지

1 2hr Gov

Contemplates, "Think, a pathi isine but the Bank N'he in the Losition 1

my duwuting

being left in th

the mayor part.

my

This is the tal. foreshadowed at- 'X'

in (21)

54002/39, and in view of

[terms

the

Page

Page

9

terms rcontext of the latter fol. I am rather surprised at the statement at the and

of

this one cash is foreseen".

that "no immediate need of the

of the surplus balances of $13,627,526

estimated to be available at the end of 1939

The sum advanced against the raising of is expected to be $12,271, 1976 (of which

$11,140,

000

13, 949, 309

Loans

will be against the 1934 Loan

2,809,302

and $1907 976 against a future loan

mainly for waterworks

7

Revised

24/11

NISA.

which has not yet been provided for by Legislation). The actual [available] carry-over therefore, [will be only $655,550, of which at least $450,000

is required in the form of cash] is an overdraft

of $321,783. The position in 1940/41 is at present dificult to appreciate, but it was proposed in the draft Ests. to contine advances against a future loan until at t=31/3/41 advances against loans would have totalled #m $14,433-5627

15, 510, 395

If the expenditure on minesweepers and aeroplanes which the Gov. wishes to in- car (see (21) x (22)

which

we are

54002/39), and

referring on General pop

to the Treas. & Service depts, is approved,

The Gait. will need the cash to pay for

Then

as soon as they are ready, it not before, and if it has not by then been collected in the form of income tax or

Some other

emergency

laxation to be sub-

Fate

stituted for it, it will have to come out & As to which we

of surplus balances, or the Exchange fund surplus. It is true that the need for more

[Than

a

shall have to give decision if the balance of the 1934 Loon is not to be raised now.

age 9

age 9

Page

Page

4. abeling

Revised 24/11

UPSI).

Loon

so clearly equine Agislation.

www

3/11/37

borrow. of it was here in som obtin form than by a public live Ith experies wo friesmantle. he insignifi

ins

"not quite

ms

See below

my

10

than the available liquid surplus [of san $200,000] may not be strictly speaking "immed- iate", but in view of the generally uncertain economic political position of Stk. it may arise much sooner than expected.

There is nothing in the 1934 Loon Ordice. to

say

where it shall be roused, but the currency is tk, dollars, the interest is

HK, payable the bonds redeemable in VII, and nowhere else. The number of issues is not limited, only their total nominal amount, and it would not be essential to issue the whole of the balance now

The whole of

in

The

the

hear

it

were not required

proceeded we

and there were a reasonable prospect of rausing more on better terms later, talking into account the additional issue- experces involved in taking two bites at the cherry.

The amount required for the mine- Sweepers would be $3,500,000: how much for 10 training aeroplanes the expenses of training pilots I do not know.

I think that in writing to the treas. asting them to agree to the raising of the Loon in this country,

08

W Boyce proposest, we should point out that the immediate need for raising This loan is the intention to incur heavy expire. in Itk. upon defence measures which might otherwise have had to be metly HM.G. also send them a cope of The 6934 Loan Ordice, since I cannot find from 33706/34 that we did so at the time.

? Copy of the letter to go

proposed: ran

to CA. as

interim reply to the Grov on saving ram, that the NisAndrews matter is under refice. to Treas.

22/11

ge 10

ge 10Page 11

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