CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 192

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Code

OUTWARD

TELEGRAM

13 197

TO HONG KONG (Sir H. Young)

FROM S. OF S.

COLONIES.

Sent 2nd September, 1946. 13.45 hrs.

TIEDIATE No. 811

My telegram No. 600 paragraph 4m.

Crown Agents for the Colonies are prepared to finance special expenditure temporarily by advances from Joint Colonial Fund at bank rate varying on security of appropriate loan ordinanes. They would also require

assurance that in the event of the advanos from Jolat Colonial Fund having to be repaid and prospects of market loan in London, being unfavourable, freeaury will undertake to provide necessary funds,

20

This of course involves novistance From U. K. funds, and Treasury will not feel able to agree to any assurance on above lines unless they are satisfied (1) that every effort is being made to raise maximuna additional revenue whether from new taxation or by ikoreake of existing taxes; (2) that before reccurss is had to London, possibilities of a local loan should be exhausted on basis mentioned in paragraph 4 of my telegram No. 600, namely that the terms should not be apprecibly lean favourable than those obtainable in London.

3c I should accordingly be glef of any information and assurances you can give me on the first point,

Copies sent to:

#raaguzy

Crown Agente -

/particularly

Miss K. B, Aslie, Xo, Ovel. Mo. A.M. Hacks, Mr. Goldburg,

VOR, Supell