CO129-598-2 Tai Lam Chung Reservoir Project 24-6-1948 - 3-3-1949 — Page 4

Mr Palmer

I have had

4

with

about the Tai ham chang

agreed:

Mr Bancroft

scheme. He

(a) that there

was

possibility of a

C.D.-W

grant

loan. As he pointed

out

2

the total of unallocated CDow

funds remaining for all colonies was

only about kill m

H. Ki

own

only him.

न

Cours

while territorial grant

was

(b) that the chances

loan

भ

hondon

a

were

remote. It'

agree

to such

difficult to for projects for

is provm]

brann

more imm

essential than this.

immediately

(c) that the best solution might well be for H.K. to endeavour to finance the scheme

as

for

Ow

possible from revenue balances

the understanding that if necessary

re cousse

borrowing

could be

imande

local

After consulting the

Overseas Finance Dept. of the Treasury, be said that they would have

objection in

principle to the corollary that the local loan

£150M might be exceeded for this purpose. They would of course. wish to be kept in touch with

move to

Joans

raise such additional

If Bancroft rather tentatively suggested

that the in this

thought.

chen

c.). c.

scheme

he

might be interested although

doubted

cup of tea

the idea to

said that

.

furthe

If it

were quite However I mentioned

Mr Sidebotham and he before conveying