CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 164

Cypher (0.T.P.)

INWARD TELEGRAM

28

169

COFY FOR

FROM HONG KONG (Sir M. Young)

TO S. OF S.. COLONIES,

D. 30th October, 1946. R. 30th

#

No. 1357 Secret,

Your No. 1079.

07.40 hrs.

25.

31 C

XX

XI

←

194

I

JA HA VA

RECEIVED

31

REGISTRY

20.29

Leefends

upra

condition

22% nomal

Loan.

I note that provision should be made for raising of loan both locally and in London, but I am in some doubt as to your intention regarding rate for London portion of issue, as 32 per cent appears to be too high. Local issue should be covered by Ordinance on lines of No. 11 of 1934 but, if rate of interest for London issue.is lower, presumably separate Ordinance would be required. This would cause difficulty over apportionment of sum to be raised, as it is impossible at present juncture to estimate this with any accuracy and it would probably be undesirable to (corrupt group relax) power to raise on each market much greater amounts than are really contemplated, I should be grateful for your views on these aspects.

29

I should be glad of your advice as to whether period of loan should be 20 to 25 years as originally proposed, with provision for repayment by means of Sinking Fund, or fixed period of 25 years with redemption of (corrupt group ?balance fixed) as in Section 5 (2) of Ordinance No. 11 of 1934.

る。

Presumably, no attempt will be made to float loan in London unless this becomes necessary to repay advances by joint Colonial Fund. Please inform me whether I am right in thinking that it is unlikely to arise for some considerable time and also whether any specific reference should be made in legislation to fact that loan will be used to repay such advances.

4.0