DRAFT TELEGRAM
209
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Hong Kong Government exploring possibilities of local borrowing to finance special e xpenditure of rehabilitation and reconstruction. Total Hong Kong dollars 77 million needed in current financial year and unknown amount in 1947/48. To meet this Governor expects 25 million might · be raised locally, but mainly from banks and insurance com anies.
H.M. G. hope this figure may be increased, and we hope if you are shortly to visit Hong Kong for reasons mentioned in telegram No.44 from NANKING to Hong kong you might discuss with Governor:-
(i) posibility of attracting holders of
Hong Kong notes in South China to substitute for them the new Hong Kong Government loan;
(ii) efect of putting some pressure behind
the scenes on wealthy Chinese in Hong Kong referred to in recent Times leading article (13.8.46) to invest in the loan if as seem probable it would be difficult to get at them adequately by taxation. Might prove effective if it were conveyed to them that H.M.Government felt strongly that if to quote Times they are to "swarm in to seek the comparative security or the British flag" they sho ld subscribe handsomely to a loan for the rehabilitation of the Colony.
3. Colonial Office have been consulted and will communicate with Governor of Hong Kong.
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