OUTWARD TELEGRAM
54126/4/46
her (0.T.P.)
TO HONG KONG (Sir M. Young)
FROM S. OF S.. COLONIES.
Sent 4th February, 1947.
22.15 hrs.
IMMEDIATE
No. 220 Secret.
Your telegram No. 1357.
40.
187
Loan.
Very much regret delay in replying. Following are my views on principal points in your telegram.
(a) Separate ordinances for local and London loan are not necessary and there is no need to mention the interest rate in the ordinance. Draft of appropriate ordinance follows by air mail.
20
(b)
Terms of first local issue should I suggest be 25 year, as originally proposed, with sinking fu unless you consider prospects more favourable ir sued for fixed period of 25 years.
(c) Redemption; Advantage of sinking fund is that it allows flexibility in arrangements for repayment or loan. For example statutory fund might be restricted to 1% per anmun, leaving question or supplementary fund to be considered in say three years' time when financial position of Government may have improved, Terms of any later local issues, as of any London issue, could of course be varied to suit circumstances at time, Crown Agents will presumably be appointed trustees of Sinking Fund and would invest in suitable securities and with my approval could invest part in purchase of loan if price of latter dropped unduly.
7(0)
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