CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 210

that the possibilities of a local loan should be

exhausted before recourse is had to London) on the

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.

4. 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 revenue put forward in

paragraph 2 of my telegram No.600. The raising

of such revenue is, of course, also most important

from the point of view of the Colony's prospects of

raising a loan. If it were possible to say with

reasonable certainty that there would be a balanced

budget in 1947/48 that would I am sure materially

improve the prospects.

5. As to the second point, I note from paragraph 13

of your despatch No.48 that you are advised that it

would not be possible to float a local loan at a rate

of interest lower than 3 and that it seems improbable

that more than $25,000,000 would be subscribed.

be glad to learn what would be the other terms of

price

such a loan, namely vate of issue and period.

have

Should

In any Accon Tamen

case I should be lad to know that you are to the

principle proposed in paragraph

(24) 07

his lefue form

•

215

It is considered here that 311⁄2°6 for a

long term. local loan 1/ Say 20-23 year Lappedy

ansiently unduly Of high

in merent

of this telegram. I would not be

.6. I shall be fad to receive your reply to this

telegram as soon as possible. Meantime further

consideration is being given here to the items of

special expenditure included in the estimates amounting

to some $77,000,000 which, if approved, will fall to

be financed under the arrangements discussed above.

You will no doubt be considering what other projects,

if any, should be provided for and submit details.

aintance of Kory.Koup.

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