CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 2

نماید

Finans

1. Tel. No.600 to Mong Kong

Coriginal Aug

5-4626/1/46)

-

Min Palmer,

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1

Fran experience the main

ansitions made came the passing

the

2

29/7/46

Gown Agents

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assuance

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in

a loan ordnance

that, if the wan wordin, Teeasury

authority would be given. P'heps

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مسمه

To. T. Goldberg. Gry

3. From Jones (Frear)

Draft Knewith

2/5 for

6m- 6/8/46.

8/8/46

Me

Mr. Palmer and I took the opportunity to discuss this with Mr. James at a meeting yesterday.

Mr. James was unable to say whether the second paragraph of (3) meant that Hong Kong would be allowed to raise a London loan even if because of its allegedly poor credit at the present time, a higher rate of interest had to be paid than the market rate. Unless it did mean that then (as I in ve ascertained in a telephone conversation with Mr. Goldburg) the mere assurance that the Treasury would raise no objection from the capital issues standpoint to the raising of a market loan would not be sufficient.

this

We have, however, since had a despatch on the Estimates in which the Governor indicated loan policy, and after a brief discussion with Mr. James, we agreed that the various issues which arose could best be settled by discussion at which all those

/concerned