might lead to undesirable political misrepresentation, as allegation would very probably be made that this Government was forcing the Chinese nationals to contribute to Hong Kong loan against their will. While I consider that officers might be invited to take part of their arrears of salary in scrips I would strongly deprecate any compulsory acceptance of substantial percentage of payment in this form. I am not quite
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I clear whether, if the first issue of $50,000,000 should be
over subscribed before these payments are made, it would be in order to make a amall further issue restricted to Government officials without notification to the public; and I should be grateful for guidance on this point. It is true that there is local) sanction for the floating of this loan up to maximum of
corrupt group $150,000,000 in one or more issues, but it has been definitely stated that the first issue will be limited to $50,000,000. Issue of savings certificates would be quite impracticable as clerical labour involved in issuing such certificates and cashing them immediately afterwards would be prohibitivo.
I do not contemplate that additional purchasing power represented by payment of arrears will result in any (7group omitted) existing price control machinery. As has already been etated bulk of
thess payments will be used to liquidate debts both privately and to barks.
12. I should be grateful for your comments on pointe reised above at the earliest possible opportunity, and meanwhile I am deferring publication of your proposed announcement. of draft announcement revised in the light of argumente above
Text is contained in my telegram following No.1879.
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Mr. D.R.Serpell, .B.E. Mr. H.R. Apperley.
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