CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 171

MC

Tel. No.: Whitehall 1234

NATIONAL

SCHE

O MEN:

14415

Your Reference.

54126/4

Treasury Reference...S.52892/04

Dear Mayle,

2:

TREASURY CHAMBERS, 176

GREAT GEORGE STREET,

LONDON, S.W.1.

1st October, 1946.

Miss Wooraam

Please refer to REMAC No.80 of 10th September replying to telegrams 813 and 814 on the possibility of inducing the Chinese in Hong Kong, and the holders of H.K. notes in South China, to invest in the new loan.

It is disappointing that the prospect of getting the Chinese to contribute to the loan appears so un- favourable. We still feel, however, that steps should be taken to make it known to hoarders of H.K. notes in South China that they could get equal security against depreciation, and perhaps greater security against requisitioning as well as some return on their holdings, by investing in H.K. Government securities. We also feel strongly that the wealthier Chinese treating Hong Kong as their asylum should be told firmly that it is up to them to contribute to the colony's rehabilitation. If, of course, an effective method of taxing them can be found, so much the better.

Yours sincerely,

Cecilia Bremner

N. L. Mayle, Esq.,

Colonial Office.

for