CO129-605-4 Government loans 12-7-1946 - 6-1-1948 — Page 218

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such a qualification is intended then, as

we have mentioned to you in conversation,

the Crown Agents would in effect not have

any security on which to make advances, pending

the raising of a loan in Lendon This point

therefore is one on which we should be grateful for further Treasury advice.

com the wis

Since you w rote, however, we have

Sin Mana Young

received the Hong Kong Government le despatch

Covering over

wise be

on the Estimates, a copy of which has been

sent to you.

In that despatch te Governor

indic ated inter alia that he considers a loan

could not be raised locally before next year

and that it is unlikely that a loan could be

raised at less than 3% for an unspecified

);

?

V. in whi

Sucking

fance of which would be guaranteed by wg.

cony died. 54126146

might

and that there would probably be little

public subscription apart from subscriptions

which would we raised by banks and the maximum amounts would be of

the order of $25,000,000. He therefore asks

that the loan should be raised in London.

It now seems that the issues which

have to be decided can be summed up as follows:

The what is the maximum amount which we

1.

should contemplate permitting Hong Kong

patse-by patse by loan In our telegram No. 600 to

telegramt

Ke 194617

λ

in ann

uspect-

146/4 Special

expendiline

+

(1)

Hong Kong we contemplated that special expenditure

amounting to $77,000,000 should be financed by

-chall

loan. We have to agree definitely with the

Government of Hong Kong as to the exact figure

but we may take this figure as representing the

amount to be covered by loan in respect of

1946-47. It is of course possible that in

wie

1947-48 further special expenditure would be

we also have to met recessary which could similarly be floated by

Himilarly

/Loan