CO129-598-3 Tai Lam Chung Reservoir Project 17-3-1949 - 7-10-1949 — Page 20

subject to ways being found to overcome

the difficulties of financing it and

to the limitations imposed by the Colony's

with matters of defence. immediate preoccupations in preparing to

resist aggression, external or internal.

3. My telegram No. 1119 contained a

warning of the financial difficulties

likely to be involved.

In considering

possible sources of finance, assistance

from Colonial Development and Welfare

funds must be ruled out, for it would not

be possible to allocate to one Colony from

the remaining funds available a sum

approaching that required. I have also

ascertained that the Colonial Development

Corporation considers that this is not the

type of scheme which is appropriate for

financing from their funds.

You will have noted my Savingram No.778

of the 16th August 1949 agreeing to the

issue of bearer bonds when future loans are

raised locally, and my telegram No. 1135

approving the 1949/50 Estimates, in which I

informed you that I would address you further

on a number of questions, including the

possibility of raising a loan on the London

market. I will advert to the relationship

between that question and the present

proposals in the promised communication;

for the present I can only repeat, with

/regret,

(10)

لله

Page 20Page 21