CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 196

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Wt. 49614.485 3'46 50m. S. & S. Ltd.

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Mr. Mayle

Mr.

Mr.

Mr.

30/8/46 Emanned 30/P

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State,

No.

DRAFT.

CODE TELEGRAM

GOVERNOR,

HONG KONG.

FURTHER ACTION.

My telegram No.600 paragraph 4.

Crown Agents for the Colonies are

prepared to advance special expenditure

temporarily by advances from Joint Colonial

Fund at bank rate varying on security of

appropriate loan ordinance. They would also

require assurance that in the event of the

advance from Joint Colonial Fund having to

be repaid and prospects of market loan being

unfavourable, Treasury will undertake to

provide necessary funds.

2.

This of course involves assistance

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 maximum

additional revenue whether from new taxation

or by increase of existing taxes; (2) that

before recourse 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

appreciably less favourable than those

obtainable in London,

3.

I should accordingly be glad of any

information and assurances you can give me

on the first point, particularly with

reference to the suggestions for raising

additional