CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 101

54126/4/47

Code

OUTWARD TELEGRAM

TO HONG KONG (0.A.G.)

FROM S. OF S. COLONIES.

Sent 23rd May, 1947.

10.00 hrs.

No. 831.

53

103

1.

Your telegram No. 622,

Loan.

Unless you feel confident that $150 million could be raised without difficulty as and when required it seems better to restrict provision to $100 million especially if response to first issue of $50 million is uncertain (see paragraph 1 of your telegram No. 1357). In view of difficulty in obtaining supplies it is possible that in fact $100 million may not (repeat not) be exhausted by 31st March, 1948.

2

Provision for too large an amount might give rise at this date to local doubts whether Hong Kong will be able to service the loan.

3.

Advances from Joint Colonis). Fund can of course only be made on security of unused borrowing powers provided by Loan Ordinance.

Whilst therefore the decision is primarily for you in light of local factors, in my view provision should be made for only $100 million (repeat g100 million) but that when Bill is introduced, á suitable explanation should be given explaining that that amount was estimated to be sufficient to meet immediately foreseen liabilities but that powers might have to be sought at a later date for raising a further amount when the full extent of the Colony's liabilities could be more accurately estimated.

Copies sent to:-

Crown Agents

Crown Agents for the Colonies.

Treasury

Treasury

Mr. A.H. Hicks.

Mr. D.R. 3expell 0.B.E. Mr. H. R. Apperley.