CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 146

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the U.K., so long as assistance from U.K. is

required.

7. The question of the raising of loans will also require consideration not only for financing

expenditure included in your telegram which could reasonably be charged against loan funds, but for further expenditure in connection with rehabilitation.

I should be glad to have your views on the

possibility of raising the following types of loans.

(a) Local dollar loans giving period at the

8.

(b)

(၁)

rate of interest;

introduction of "Savings Certificates" the sale of which has proved very successful

in Malaya;

introduction of Post Office Savings Banks

which is of help to the small investors. Certain points of detail in your telegram have

been discussed with Barnett who has just arrived in this country, but it would be useful if Follows could pay a short visit to this country as soon as he can conveniently be spared, to discuss the financial situation generally. Among other subjects it would be useful to discuss with him (a) the possibility of the early introduction of an income tax; (b) any preliminary plans that may have been drawn up in Hong Kong for the use of the Colony's allocation of Colonial Development and Welfare assistance; (c) the subject referred to in paragraph 10 of this telegram.

9. It is suggested that the following questions

referred to in your telegram which raise important points of principle, should form the subject of

separate communications:-

(a) employment of Chinese in technical posts;

(b)

expenditure on Social Services.